New Bill To Regulate Crypto Assets In United States - Exclusive.
2021-03-09 | Mike Hallen
Congress may soon
attempt to clarify digital asset regulation bill
within the United States.
Reps. Patrick McHenry (R-N.C.) and Stephen Lynch (D-Mass.)
introduced legislation earlier today on Tuesday
to make a
working group composed of industry experts and representatives from the United States SEC [Securities and Exchange Commission] and CFTC [Commodity Futures Trading Commission]
to guage the present legal and regulatory framework around virtual assets
within the U.S.
The three other co-sponsors of the bill are Glenn Thompson (R-Pa.), Ted Budd (R-N.C.) and Warren Davidson (R-Ohio).
The ultimate goal of the legislation, called the “Eliminate Barriers to Innovation Act of 2021,” would be to clarify when the SEC has jurisdiction over
a specific token or crypto assets (i.e., when
it's a security) and when the CFTC has jurisdiction (i.e., when it’s a commodity).
U.S. regulations can often appear lacking, with no clear rules on when
a particular cryptocurrency is treated as a security or not, with SEC enforcement actions offering much of the guidance
during this area. SEC Commissioner Hester Peirce, who is outspoken on
the difficulty, tried tackling it in 2020 by proposing a three-year
shark repellent for projects
to urge off
the bottom.
As per the terms of the bill, Congress would create a
working group in 90 days of the bill’s passage composed of SEC and CFTC representatives.
Non-governmental representatives would come from a financial technology firm, a financial services institution, small businesses using financial technology, investor protection groups, organizations that support investments in underserved businesses and
a minimum of one academic researcher.
Also in a year, this group would be required to file a report analyzing present regulations, the impact
they need on primary and secondary markets
and the way the regime impacts the United States competitive position.
The report would also
check out how custody, private key management and cybersecurity are presently treated beneath the law, and what future best practices for fraud prevention, investor protection and other issues could
appear as if.
The report would also embody recommendations for improving primary and secondary digital asset markets, along with their “fairness, orderliness, integrity, efficiency, transparency, availability as well as efficacy.”
Amy Davine Kim, chief policy officer at the Chamber of Digital Commerce, added that the new legislation aims
to determine an organized, comprehensive regulatory framework for digital assets
within the U.S.
“It brings together both the SEC and CFTC within a formal way, to figure via a number of the key issues that have impacted legal clarity withineth the ecosystem for years,” Kim explained. “Now we've a chance to start out addressing them during a methodical way with variety of stakeholders.”
The bill was originally
alleged to be introduced earlier on Monday
and thought of under a voice vote by
the full House of Representatives, revealing broad bipartisan support,
consistent with Rep. Don Beyer (D-Va.), but was pulled due to
procedural actions taken by
the Freedom Caucus.
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