Breaking: Republican Legislators Demand Regulation of Cryptocurrencies Through the Formation of a New House SubcommitteeThe proposal for the U.S. Crypto Currency Act of 2020 is here. Republican Congressman Paul Gosar of Arizona has put forth a proposal to legitimize Bitcoin and define digital assets. Titled the ‘Crypto Currency Act of 2020’, the proposal aims to resolve a number of regulatory concerns related to cryptocurrencies in the U.S.
At present, there are no clear guidelines on cryptocurrencies neither is there any dedicated regulator to monitor the same. The lack of support for such businesses, investors and entrepreneurs are leading to widespread confusion. There’s no clear definition of a cryptocurrency, its types, uses, and implications on the markets. The updated bill put forth by Paul Gosar attempts to address such confusing questions in detail.
What’s new in the updated Crypto Currency Act of 2020
Gosar’s proposal contains many new additions to the earlier Crypto-Currency Act of 2020 that was leaked in December last year. The new bill proposes that cryptocurrencies be classified mainly into three categories namely cryptocurrency, crypto-commodity, and crypto-security. Such a classification will make it easy for the three different government regulators to oversee the various digital assets. These agencies include the Securities and Exchange Commission, Commodity Futures Trading Commission, and the Secretary of the Treasury. Each one of them can supervise their respective digital assets.
The proposal further says that cryptocurrency represents U.S. currency just like a stablecoin. The definition will, therefore, bring coins like Tether (USDT) under the governing control of the U.S. Treasury. On the other hand, a crypto-commodity is akin to a service or product and will be overseen by Commodity Futures Trading Commission. Interestingly, Bitcoin will be covered under the crypto-commodity definition. Crypto-securities will be blockchain-based or decentralized equity, debt or derivative instruments.
United States crypto regulations evolving gradually
Government regulators around the world are grappling with crypto-related concerns. On one hand, they want to protect customers while at the same time they wish to regulate mainstream crypto assets. Often times, the overlapping goals result in utter confusion. Recently, the Supreme Court of India struck down an earlier circular by the Reserve Bank of India that prohibited cryptocurrency trading.
The Crypto Currency Act of 2020 tabled by Paul Gosar will hopefully clarify the air around cryptocurrencies with some concrete definitions. Also, if the bill is able to distinguish the regulatory zones of various agencies, it can prove beneficial as the official red tape will be defined clearly.
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