What You Need to Know
- The SEC and CFTC are to establish a digital asset working group under the Eliminate Barriers to Innovation Act.
- The Senior Security Act requires that the SEC set up a senior investor task force.
- The Investor Choice Act would allow investors to choose between arbitration and court.
The House passed late Tuesday several bipartisan financial services bills to address the burgeoning digital assets space, senior financial fraud and insider trading.
The Eliminate Barriers to Innovation Act, H.R. 1602, requires the Securities and Exchange Commission and Commodity Futures Trading Commission to establish a digital asset working group to ensure collaboration between regulators and the private sector to foster innovation.
The bill, introduced by Rep. Patrick McHenry of North Carolina, ranking Republican on the House Financial Services Committee, “is the first step in opening up the dialogue between our regulators and market participants and move to needed clarity” on digital assets, McHenry said in a statement.
The Promoting Transparent Standards for Corporate Insiders Act, H.R. 1528, also passed the House and requires that the SEC study whether the agency’s insider trading rule, Rule 10b-5, should be amended. The bill is designed to protect retail investors and the market from illicit insider trading, while ensuring that the rules governing insider trading are clear, fair and not prohibitively onerous.
The Senior Security Act of 2021, H.R. 1565, requires that the SEC set up a senior investor task force to protect against the increasing instances of financial exploitation of senior investors.
Arbitration Bill Floated
Legislation was also reintroduced in mid-April, the Investor Choice Act of 2021, to allow investors to choose between arbitration and court if a dispute arises as well as allow class-action lawsuits.