Cryptocurrencies are proving to be the hottest fintech trend throughout the world. This is encouraging governments in all parts of the world to introduce bills to regulate this decentralized virtual financial technology revolution.
The United States has now joined the bandwagon. US lawmakers have introduced a bill to clarify cryptocurrency regulations. You may see Congress clarifying digital assets regulation in the United States soon.
Sponsors of The Bill:
The credit for introducing legislation on Tuesday goes to Mr. Patrick McHenry (R-N.C.) and Stephen Lynch (D-Mass.). The objective was to create a working committee of industry experts representatives for the evaluation of the current and legal regulatory frameworks in the United States.
All members in this working committee will be from the following:
- The United States Securities And Exchange Commission (SEC)
- Commodity Futures Trading Commission (CFTC)
- Non-Governmental Representatives
Glenn Thompson (R-Pa.), Ted Budd (R-N.C.) and Warren Davidson (R-Ohio) have co-sponsored the bill.
Bill’s Name And Goal:
The biggest goal of “Eliminate Barriers to Innovation Act of 2021,” is to throw light on the following:
- When the United States Securities And Exchange Commission gets jurisdiction over a token or cryptocurrency. This will explain the terms and conditions under which some token or cryptocurrency will be a security.
- When the Commodity Futures Trading Commission (CFTC) gets jurisdiction over some cryptocurrency or token. Meaning, it will explain terms and conditions under which some token or cryptocurrency will be a commodity.
Some More Specifications of Eliminate Barriers to Innovation Act of 2021:
Congress is expected to form this working committee within 90 days’ time from the date of the bill’s passage. Once this bill is passed, the group will have to file a report providing accurate analysis of the impact they have on the following:
- Primary Market.
- Secondary Market.
- The impact of the regime on the competitive position of the United States.
- The way custody, private key management, and cybersecurity t under the law.
- The best practices to prevent fraud.
- The best practices to protect investors and their interests.
- Other issues.
- Recommendations dedicated to improving primary as well as secondary digital asset markets. This includes the following:
- Their fairness.
- Their orderliness.
The actual aim of this legislation is to ensure a properly organized and comprehensive regulatory framework for digital assets throughout the United States, said Amy Davine Kim, Chief Policy Officer at the Chamber of Digital Commerce.
Eliminate Barriers to Innovation Act of 2021 will officially bring SEC and CFTC on the same page work out some key problems that have impacted the legal clarity so far. This could be a great opportunity to address those issues methodically with many stakeholders, said Amy Davine Kim.
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