In the latest, United States regulators have defined digital assets law in the country, Reuters reported. Reportedly, firms that have the digital assets registered with them have recently received a notice from the financial regulators of the United States.
The notice stated that these firms are obliged to abide by the securities laws that prohibit the practice of money laundering and required disclosure of all the suspicious activities.
Digital assets law and US regulators
The financial regulators: The United States Securities and Exchange Commission, Financial Crimes Enforcement Network, Futures Trading Commission seeks to achieve the obligation of the firms under the laws of anti-money laundering, bank secrecy and counter the terrorist financing by utilizing digital assets like cryptocurrencies.
The trade and investment of digital assets fall under the grey area of regulations, and it gets complicated to classify them decide which laws are to be applied. However, on 10 October, regulators stated that those laws which seek to prevent the financial system from getting involved in illegal acts are broadly applicable for the digital assets.
CFTC and the SEC, in the past two years, have issued guidelines, in order to clear their stance about the laws related to commodities and the securities that apply to various digital assets including the cryptocurrencies: Bitcoin (BTC) and Ether (ETH). Reportedly, CFTC’s new head stated that the agency now recognizes Ether as a commodity.
According to analysts, this recently issued notice and all the other guidance from the regulatory authorities would be paving ways for traditional investors to invest in the digital assets.