Two Congressmen from the United States have recently introduced a duo of bipartisan bills that have the goal of preventing crypto price manipulation as an effort to make the technology more widely accepted in the country.
Darren Soto (Democrat) and Ted Budd (Republican) have created the bills together and announced them. They will be called “The Virtual Currency Consumer Protection Act of 2018” and the “U.S. Virtual Currency Market and Regulatory Competitiveness Act of 2018”.
The biggest function of these two new bills is to make the United States a leader in the crypto industry by boosting the support that these technologies have in the country and to regulate them better to create a safer environment for investments. Both bills basically are aimed to ask financial institutions like the Commodity Futures Trading Commission (CFTC) to create a roadmap for the regulation of cryptos in the U. S.
The Two Bills
One of the bills is focused on the impact that crypto manipulation has. It intends to boost the research of price manipulation in the crypto market and to make the competent organizations understand how to prevent these activities and the size of their impact in the investors.
This bill exists because price manipulation is very real in the United States and in the world and this can cause serious problems for the investors and make them lose money. The industry is still struggling to solve its problems on its own so the government is making a move to help it.
A specific case of market manipulation that has called the attention of the American government is Bitfinex and Tether and how Tether Ltd may have used its stablecoin to support the price of Bitcoin from falling.
The other bill is focusing on asking the regulators to research more about cryptos in many jurisdictions of the world and then to recommend specific changes in the legislation that can help to promote adoption of the technology in the United States.
Another specific example of the bill is that the politicians are asking for the regulators to clarify which tokens can be considered commodities and which ones will be considered securities and need a more specific oversee.
The two politicians have released a joint statement to the media affirming that the cryptos and the blockchain technology could drive the growth of the country and this is why the technology has to be well regulated.
They believe that when the customers and investors are protected, people will start using the technology more and this could maximize the potential gains of the investors as well as to make important technological advances that will help the whole country.
U. S. Politicians And The Crypto Industry
Many U. S. Representatives are now focused on cryptocurrencies. While some of them do not have such a positive view of cryptos as the bipartisan duo who promoted the bills do, there are still plenty of politicians support cryptos in the country.
As early as 2014, Congressman Steve Stockman already had plans to tax Bitcoin as currency instead of property and a new bipartisan law was introduced to define the blockchain technology back in October 2018.
Also this year, Soto, Budd and other prominent lawmakers talked to the chairman of the Securities and Exchange Commission (SEC), Jay Clayton, and asked him to clarify whether Initial Coin Offerings (ICOs) can be considered sales of securities or not, something that the chairman did not explain at the time as the whole question is very muddled right now.