US Congress New Draft Bill Aiming to Classify Crypto Assets Regulations
A new draft bill is introduced by Paul Gosar, an Arizona Congressman aiming to clarify the cryptocurrency market regulations in the United States. The crypto-currency Act of 2020 sets permissions for which Federal Agencies should regulate crypto assets.
The highlighted things of the draft bill are that it classifies the crypto assets in different categories. The draft bill categories the crypto assets in 3 different categories include crypto commodities, cryptocurrencies and crypto securities.
Crypto Commodities are defined as economic goods or services stored on a public ledger (blockchain) and which the markets treat with no regard as to who produced the goods or services.
Crypto currencies are defined as the representation of the United States currency or derivatives resting on a blockchain or Distributed Ledger Technology (DLT). The crypto currency category includes reserve backed stablecoins and currencies determined by smart contracts or distributed oracle.
Crypto securities mean all debt, equity and derivative instruments on a public blockchain or Decentralized Cryptographic Ledger. Crypto securities are other than those which are registered and operated as complaint money service business.
Each type of crypto assets falls under a different regulatory body which acts as a Federal Crypto Regulator or Federal Digital Asset Regulator.
This is an assumption that the Commodity Futures Trading Commission (CFTC) would be the regulatory agency for crypto commodities and the Securities and Exchange Commission (SEC) would be the regulatory agency for crypto securities. The Financial Crimes Enforcement Network (FinCEN) maybe the regulatory agency for cryptocurrencies.
It is interesting to see how far the draft bill goes in US congress. The cryptocurrency industry is in full support of the draft and waiting for the US Congress to pass it.
