On Monday, representative Paul Gosar (R-AZ) presented the latest proposal to give clarity and legitimacy to Bitcoin (BTC) and digital assets. The Cryptocurrency Law of 2020 attempts to resolve a number of regulatory issues related to cryptocurrencies.
Currently, the United States does not have a comprehensive framework for cryptocurrencies to support businesses, entrepreneurs, or related investors. The lack of clarity continues to confuse what a cryptocurrency is, how one can differ from the other, and the U.S. regulator who should oversee Bitcoin against Tether against Ethereum. Gosar’s bill, an updated version of a leaked proposal in December, attempts to answer these questions.
According to the new project, regulators would be responsible for classifying digital assets into three separate categories: crypto-commodity, cryptocurrency and crypto-security. This approach would give the three US regulators covering commodities, currencies and securities – the Commodity Futures Trading Commission (CFTC), the Secretary of the Treasury and the Securities and Exchange Commission (SEC) – responsibility for different digital assets.
The bill defines “cryptocurrency” as a representation of an American currency, such as a stablecoin, as opposed to Bitcoin, which is not supported by any government and does not represent any national currency. According to the proposal, Tether (USDT), USD Coin (USDC), TrueUSD (TUSD) and similar digital assets indexed to the U.S. dollar would be regulated by the U.S. Treasury through the Financial Crimes Enforcement Network (FinCEN).
Crypto-products are economic goods or services that are located on a blockchain or a decentralized cryptographic register. This definition seems to apply to digital assets such as Bitcoin.
Crypto-titles are defined as “all debt securities, stocks and derivatives that are based on a blockchain or a decentralized cryptographic register”.
Regulators around the world continue to grapple with crypto assets and how to protect consumers, changing course and pushing for clarity. The Supreme Court of India recently overturned a circular issued by the Central Bank of India, the Reserve Bank of India, which prohibited commercial banks from offering services in crypto exchanges and other crypto-related businesses.
In South Korea, regulators approved an amendment to legalize the trading and holding of cryptocurrencies, laying the foundation for a comprehensive regulatory framework. In Germany, policymakers have officially classified Bitcoin and cryptocurrencies as financial instruments.
You can check out the latest cryptocurrency bill of 2020 here.
Disclaimer: The opinions expressed in The Daily Hodl are not investment advice. Investors must exercise due diligence before investing in high risk Bitcoin, cryptocurrency or digital assets. Please note that your transfers and transactions are at your own risk and that any loss you may suffer is your responsibility. The Daily Hodl does not recommend the purchase or sale of cryptocurrencies or digital assets, and The Daily Hodl is not an investment adviser. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock / W. Scott McGill
On Monday, representative Paul Gosar (R-AZ) presented the latest proposal to give clarity and legitimacy to Bitcoin (BTC) and digital assets. The Cryptocurrency Law of 2020 attempts to resolve a number of regulatory issues related to cryptocurrencies.
Currently, the United States does not have a comprehensive framework for cryptocurrencies to support businesses, entrepreneurs, or related investors. The lack of clarity continues to confuse what a cryptocurrency is, how one can differ from the other, and the U.S. regulator who should oversee Bitcoin against Tether against Ethereum. Gosar’s bill, an updated version of a leaked proposal in December, attempts to answer these questions.
According to the new project, regulators would be responsible for classifying digital assets into three separate categories: crypto-commodity, cryptocurrency and crypto-security. This approach would give the three US regulators covering commodities, currencies and securities – the Commodity Futures Trading Commission (CFTC), the Secretary of the Treasury and the Securities and Exchange Commission (SEC) – responsibility for different digital assets.
The bill defines “cryptocurrency” as a representation of an American currency, such as a stablecoin, as opposed to Bitcoin, which is not supported by any government and does not represent any national currency. According to the proposal, Tether (USDT), USD Coin (USDC), TrueUSD (TUSD) and similar digital assets indexed to the U.S. dollar would be regulated by the U.S. Treasury through the Financial Crimes Enforcement Network (FinCEN).
Crypto-products are economic goods or services that are located on a blockchain or a decentralized cryptographic register. This definition seems to apply to digital assets such as Bitcoin.
Crypto-titles are defined as “all debt securities, stocks and derivatives that are based on a blockchain or a decentralized cryptographic register”.
Regulators around the world continue to grapple with crypto assets and how to protect consumers, changing course and pushing for clarity. The Supreme Court of India recently overturned a circular issued by the Central Bank of India, the Reserve Bank of India, which prohibited commercial banks from offering services in crypto exchanges and other crypto-related businesses.
In South Korea, regulators approved an amendment to legalize the trading and holding of cryptocurrencies, laying the foundation for a comprehensive regulatory framework. In Germany, policymakers have officially classified Bitcoin and cryptocurrencies as financial instruments.
You can check out the latest cryptocurrency bill of 2020 here.
Disclaimer: The opinions expressed in The Daily Hodl are not investment advice. Investors must exercise due diligence before investing in high risk Bitcoin, cryptocurrency or digital assets. Please note that your transfers and transactions are at your own risk and that any loss you may suffer is your responsibility. The Daily Hodl does not recommend the purchase or sale of cryptocurrencies or digital assets, and The Daily Hodl is not an investment adviser. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock / W. Scott McGill