The House Financial Services Committee in Washington, D.C. has voted to move forward bipartisan legislation that seeks to regulate %Cryptocurrencies.
The vote is seen as a major step in Congressional efforts to bring federal oversight to the crypto sector and regulate digital assets that are traded in the U.S.
The cryptocurrency industry has been under growing scrutiny by lawmakers following the high-profile failures of crypto lenders and exchanges such as Celsius, Voyager Digital, and FTX.
The legislation that passed the committee would define when a cryptocurrency is a security or a commodity, and give the Commodity Futures Trading Commission (CFTC) oversight of the entire industry.
The legislation is a bipartisan effort and has the support of both Democrats and Republicans in Congress.
The legislation is now poised for a full vote in the House of Representatives, the first time a cryptocurrency bill will be put to a vote within Congress.
The bill would still need to pass a vote in the U.S. Senate before going to President Biden to be signed into law. Passage of the legislation is not guaranteed.
The legislation could face obstacles in the Democratic-controlled Senate, where the head of the Senate Banking Committee, Sherrod Brown, has said he is not sure if legislation to regulate cryptocurrencies is needed.
The price of %Bitcoin ($BTC), the largest cryptocurrency by market capitalization, has gained 78% this year and currently trades at $29,500 U.S.