Credit: Shutterstock / Voyagerix

A bipartisan bill that aims to develop a regulatory framework for cryptocurrencies was passed in a key congressional committee this week. 

The new bill, which was passed by the House Financial Services Committee on Wednesday (26 July), aims to grow the allowed oversight of the Commodity Futures Trading Commission (CFTC), as well as making it clear where the Securities and Exchange Commission’s (SEC) oversight begins and ends.

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The bill marks a major milestone for US crypto advocates, after many have complained about the unclear distinction of jurisdiction between the CFTC and the SEC. 

The US government has been pining for stronger regulation since the catastrophic collapse of crypto exchanges FTX, Voyager Digital and more last year. 

Crypto enthusiasts pushing for regulatory clarity have celebrated the bill as a victory, as it marks the first time a crypto regulatory bill has been put to a vote in Congress.

Kristin Smith, CEO of the Blockchain Association, said: “Obviously we’ve had some important decisions come from the courts in the past, but this is by far the most significant legislative moment that we’ve had.”

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Although some Democrats have joined Republicans in the committee to vote for the bill – some Democrats have remained firmly against it, Reuters reported.

Maxine Waters, one of the Democrats in the Financial Services committee, believes the bill will lead to consumers having less protections. 

“This bill heeds the calls from the crypto industry while disregarding the views of the administration, the Securities and Exchange Commission and consumer and investor advocates,” she said.