US Congress Drafts Bill ‘Crypto-Currency Act of 2020’ To Bring Clarity To Digital Asset Regulation
A draft bill that will bring more regulatory clarity when it comes to the crypto sector has been introduced by an US congressman.
The bill named the Crypto-Currency Act of 2020 and will help to determine which federal agencies should regulate in the crypto space. This newest draft comes after the US lawmaker Warren Davidson earlier this year was looking to make regulations clearer by reintroducing the Token Taxonomy Act.
SEC to Regulate Crypto Securities
As reported, the US lawmaker who introduced the Crypto-Currency Act of 2020 bill was the Republican Arizona congressman Paul Gosar. This bill has cryptocurrencies divided into securities, cryptocurrencies and crypto commodities.
The draft has been proposed that for each of the mentioned categories above, to have a federal crypto regulator that provide updated announcements to the public on any required registrations and licenses.
The Securities and Exchange Commission (SEC) has been proposed for the crypto securities category, the Financial Crimes Enforcement Network (FinCEN) for the cryptocurrcey category, while the Commodity Futures Trading Commission for the crypto commodities.
The Bill Defines Cryptocurrencies
What’s even more interesting about the bill is that it defines the cryptocurrencies types. According to the draft, crypto commodity represents “economic goods or services”, crypto securities are “all debt, equity and derivative instruments that rest on a blockchain”, whereas cryptocurrency stands for an US currency representation or “synthetic derivatives resting on a blockchain”.
The bill also says that acting via the FinCEN, the Secretary of the Treasury should issue rules for cryptocurrencies, synthetic stablecoins included, that make it possible for transactions in the crypto space to be traced, just like currency transactions of financial institutions do at the moment.
Market Participants and Lawmakers Have Been Long Looking for Regulatory Clarity
Regulatory clarity is something lawmakers and the crypto market players have been looking for. Through the Token Taxonomy Act, congressman Warren Davidson wants to help cryptocurrencies stand legally in the US.
Only recently, SEC, FinCEN and CFTC have issued together a statement in which they’re saying the cryptocurrency industry needs to comply with the US financial services and banking laws. All crypto players can do for the moment is wait and see if the bills introduced by Gosar and Davidson are going to bring regulatory clarity.