Draft bill to bring regulatory clarity to the crypto industry in the U.S
According to a Forbes article published on December 19, an Arizona Congressman,Paul Gosar has introduced a draft bill, which aimes at ultimately bringing regulatory clarity to the crypto industry in the U.S..The Crypto-Currency Act of 2020 points out which Federal agencies should control each type of cryptocurrency assets.
Three flavors of cryptocurrency asset
One of the main things that the draft bill does is to define three types of cryptocurrency asset; cryptocurrency commodities, cryptocurrency currencies, and cryptocurrency securities, according to a discussion draft of the proposed bill.
Cryptocurrency-commodities are referred to as economic goods or services, that are stored on a blockchain, with compatibility and which the market handles with no regard as to who produced it.
Crypto-currencies are referred to as synthetic derivatives or representations of United States currency resting on a blockchain. It covers reserve-backed currencies and stablecoins determined by smart contracts or decentralized oracles.
Cryptocurrency-securities covers all fairness, debt and imitative instruments on a blockchain, except those that are registered and operated as complaint money services businesses.
Not ‘One Federal Cryptocurrency Regulator’ to rule them all
Each type of cryptocurrency-asset would fall under the authority of a different legal body, to act as the ‘Federal Digital Asset Regulator’ or ‘Federal Cryptocurrency Regulator’ for that type.
The Commodity Futures Trading Commission (CFTC) would be the organization in charge of cryptocurrency-commodities, and the Securities and Exchange Commission (SEC) would shield cryptocurrency-securities as might be expected.
The Financial Crimes Enforcement Network (FinCEN) would be left to control cryptocurrency-currencies.
Unpredictable, currently stifling innovation
It is likely to receive assistance from the cryptocurrency industry that has been calling for regulatory clarity for some time while it remains to be seen how far the bill progresses.
According to a report, the EU’s Fifth Anti Money Laundering Directive (5AMLD) is prepaid to come into force on January 10, 2020, bringing legal clarity to the industry on the other side of the Atlantic.