The US lawmakers are getting serious about regulating the cryptocurrency industry in 2020. Thus, the US is bringing a special regulatory framework for digital assets (including digital coins). For the purpose, a new bill called Crypto-Currency Act of 2020 is introduced to find out which federal agencies exactly are to regulate digital assets.
The bill was introduced by the Republican congressman representing the state of Arizona, Mr. Paul Gosar. The bill has divided cryptocurrencies in three major branches: securities, cryptocurrencies, crypto commodities.
What the draft of the bill states is that for each of the three categories, there must be a federal crypto regulator that will bring updates and announcements to the general public on licenses and required registrations.
The SEC has been proposed as a regulator for the crypto securities, while the Financial Crimes Enforcement Network or FinCen – for the cryptocurrency branch and the Commodity Futures Trading Commission for the crypto commodities.
The bill not only tries to categorize cryptocurrencies into separate types, but also to define them in a clear way. According to the draft introduced, cryptocurrency commodities are “economics services or goods”, cryptocurrency securities represent “all debt, equity and derivative instruments that are based on blockchain” and cryptocurrencies alone are US currency representation or more specifically “synthetic derivatives resting on a blockchain”.
In addition to the definitions and categories introduced, the bill also comments that through FinCen, the Secretary of the Treasury must issue cryptocurrency rules including stablecoins.
The entire idea of the bill has reportedly started by the Token Taxonomy Act, which was shouldered by Warren Davidson, a US lawmaker who wanted to help the crypto world in its “legal” battles in the US.
Right now, investors and cryptocurrency enthusiasts can hope to see how the Crypto-Currency Act of 2020 plays out and what it means for the cryptocurrency industry.
More about US Congress’ actions regarding cryptocurrencies can be found here: