On Friday, a lawmaker from the U.S.A presented a draft bill to establish regulatory clarity in the crypto field. The title of this cryptocurrency bill is ‘CryptoCurrency Act of 2020’, and it states the list of federal agencies that will regulate the crypto in future. Earlier, Warren Davidson, another U.S. lawmaker reintroduced a Token Taxonomy Act, that seeks to clear crypto-related regulatory issues.
What Is The Cryptocurrency Bill
Paul Gosar, a U.S. Congressman, introduced the said cryptocurrency bill in the House of Representatives. The bill’s objective is to clarify which federal agencies ought to regulate cryptocurrencies. It has three parts “crypto-currencies”, “crypto-securities” and “crypto-commodities”. The bill also proposes a federal crypto regulator for each part, notifying the people about the registration process and licenses.
A Look On The Bill’s Definition
According to the bill, the Securities and Exchange Commission (SEC) will regulate crypto-securities; crypto-commodities by the Commodity Futures Trading Commission (CTFC); and the Financial Crimes Enforcement Network (FinCEN) will control cryptocurrencies in the future.
Each cryptocurrency’s type is defined clearly. According to the cryptocurrency bill, cryptocurrency represents all synthetic derivatives that rely on top of blockchain; Crypto -commodity signifies all “economic services or services;” and equities, shares and derivatives relying on the blockchain are defined by Crypto-security.
Warren Davidson’s Taxonomy Act
Lawmakers and market participants were seeking regulatory clarity for a long time. Warren Davidson, a lawmaker from the USA, reintroduced The Token Taxonomy Act, seeking a legal stand for cryptocurrencies in the USA. Recently, SEC, CFTC and FinCEN have given a joint statement, stating that the crypto industry must act according to all banking and financial services in the USA. Thus, the cryptocurrency regulation news could bring much-needed relief to people who use digital currency. However, it remains important to see whether Gosar’s and Davidson’s bills move ahead in the next year to deliver the much-anticipated regulatory clarity.