US Congress to vote for a bill that introduces Cryptocurrency Regulations
A new bill put forward to the US Congress, titled “Cryptocurrency Act of 2020” is set to be put for a vote just after the holiday season. The new bill would provide a regulatory framework for digital assets including cryptocurrencies.
The “Cryptocurrency Act of 2020” clarifies the definition of cryptocurrencies, and would define the proper government agencies dealing with the upcoming industry. The bill introduces a regulatory framework that businesses have to comply with in order to do business in the US, and the agencies responsible for different kinds of assets.
The bill also introduces a controversial law of being able to trace back any cryptocurrency transactions to their source.
Main Points From the Bill
The bill mentions five points in which the US will be targeting.
(1) Assigns a definition of ‘Federal Digital Asset Regulator’ or ‘Federal Crypto Regulator’ to three agencies – the Commodity Futures Trading Commission (CTFC), the Securities and Exchange Commission (SEC), and the Financial Crimes Enforcement Network (FinCEN).
(2) Splits digital assets into three different categories: crypto-currencies, crypto-commodities, and crypto-securities.
(3) The Federal Crypto Regulator is assigned one of the categories and is defined as the sole Government agency with the authority to regulate:
- CFTC – Crypto-commodities
- SEC – Crypto-securities
- FinCEN – Crypto-currencies
(4) Each Federal Crypto Regulator is required to make available to the public and keep current a list of all Federal licenses, certifications, or registrations required to create or trade in digital assets.
(5) Requires the Secretary of the Treasury, through FinCEN, to establish rules similar to financial institutions on the ability to trace cryptocurrency transactions.
With the launch of Facebook’s Libra project, regulators around the world have gone in full swing to regulate the cryptocurrency industry. In the past 9 months, Asia and Europe have seen an improvement in regulations regarding cryptocurrencies. With the new cryptocurrency bill by the US, regulations are going to be further tightened in the country.
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