Paul Gosar, an Arizona Congressman, has introduced a draft bill, aimed at finally bringing regulatory clarity to the cryptocurrency industry in the United States.
New Draft Bill Aiming to Classify Crypto Assets Introduced in US Congress https://t.co/Y4q6bWhhHl #Cryptocurrencies #BitcoinRegulation #UnitedStates pic.twitter.com/epMgzNLncQ — Jason Fernandes (@TokenJay) December 20, 2019
On December 19, it has been reported by Forbes that the Crypto-Currency Act of 2020 sets out which Federal agencies should regulate each type of crypto assets.
However, one of the key things that the draft bill does is defining three types of crypto-asset: crypto commodities, crypto currencies, and crypto securities, per a discussion draft of the proposed bill.
Crypto-commodities are defined as economic goods or services, stored on a blockchain, with fungibility and which the market treats with no regard as to who produced it.
Likewise, crypto-currencies are defined as representations of U.S. currency or synthetic derivatives resting on a blockchain. This covers reserve-backed stablecoins, and currencies determined by decentralized oracles or smart contracts.
It has been analyzed that crypto-securities cover all debt, equity and derivative instruments on a blockchain, other than those which are operated and registered as complaint money services businesses.
Similarly, each type of crypto-asset would fall under the jurisdiction of a different regulatory body, to act as the ‘Federal Crypto Regulator’ or ‘Federal Digital Asset Regulator’ for that type.
As might be expected, the Commodity Futures Trading Commission (CFTC) would be the agency in charge of crypto-commodities, and the Securities and Exchange Commission (SEC) would cover crypto-securities.
Moreover, the Financial Crimes Enforcement Network (FinCEN) would then be left to regulate crypto-currencies.
Thus, it remains to be seen how far the bill progresses, as it is likely to receive support from the cryptocurrency industry which has been calling for regulatory clarity for some time.