US lawmakers proposes “Clarity for Digital Tokens Act of 2021”

To bring clarity on the Digital assets based services and companies, a new law has been pursued by the US SEC. 

Recently, we covered many news articles about the issues that were raised by the United States Securities and Exchange Commission. In most of the concerns raised, Crypto platforms faced scrutiny issues because of the unregistered securities offerings. Many firms claimed that their services are not giving securities and they are only offering crypto based services. For example Coinbase’s USDC Yield product, BlockFi & Celsius Network services. 

Read also: Regulators Now Set Their Eyes On Celsius, after BlockFi

In the last month, SEC chair Gary Gensler unveiled that they are working on a crypto draft bill to provide better clarity on the digital assets. So the new draft bill will provide a safe harbor for certain token projects.

The House Committee on Financial Services, provided this draft bill “Clarity for Digital Tokens Act of 2021“. According to Patrick McHenry, this bill will allow all the digital assets team to create their platform fully decentralized within three year without registering with the regulators. So US regulators will give full opportunity and time for the crypto companies to bring the nature of their platform fully decentralized, and in this interval of time, SEC will not take any action on such platforms from the registration perspective. 

McHenry stated that Gary Gensler, SEC chairman, stated few comments on the crypto assets which were contradictory for the crypto firms and crypto community. Further he added 

“We need to nurture innovation and technology in this country, not send it overseas…This bill….helps bring legal certainty to digital asset projects that we badly need regulatory clarity to launch.”

The executive director of the Blockchain Association, Kristin Smith, stated on this initiative of SEC to bring clarity and also appreciated the efforts of the McHenry and said that this will bring a better collar nature among regulators and crypto firms.

Read also: 5th Biggest US bank will provide crypto custody service