U.S. Congressmen Propose New Regulations Targeting Cryptocurrency
2021-09-03 09:44:45
Recently, Congressman Don Beyer introduced a new bill to Congress titled the "Digital Asset Market Structure and Investor Protection Act," which aims to establish a legal framework for regulating digital assets. Below are some key proposals from the bill:
Defining Digital Assets and Digital Asset Securities: The bill proposes distinguishing between digital assets and digital asset securities based on certain attributes, such as whether they confer rights to dividends, voting, or are issued through initial coin offerings (ICOs). Tokens classified as digital asset securities would be regulated by the Securities and Exchange Commission (SEC), while other digital assets would fall under the jurisdiction of the Commodity Futures Trading Commission (CFTC). Issuers who believe their tokens do not qualify as digital asset securities may opt to submit a de-securitization certification to have their tokens regulated as commodities.
Restricting Stablecoin Issuance: The bill proposes granting the Secretary of the Treasury the authority to approve or prohibit the issuance of stablecoins, including jurisdiction over stablecoins issued prior to the bill's enactment. Companies interested in issuing stablecoins in the U.S. should consider the potential requirements they may need to meet to obtain necessary approvals in the future.
Establishing a Digital Asset Transaction Database: For digital asset transactions not recorded on a public distributed ledger, the bill requires that transaction details be reported to a CFTC-registered digital asset transaction database within 24 hours of the transaction.
Enhancing Consumer Awareness of Digital Asset Nature: The bill mandates that the Federal Deposit Insurance Corporation (FDIC), the National Credit Union Administration (NCUA), and the Securities Investor Protection Corporation (SIPC) issue notices to ensure consumers understand the distinction between digital assets and deposits, and that digital assets are not protected by federal deposit insurance or SIPC coverage.
As the bill is still in its early stages, it remains to be seen how it will evolve throughout the legislative process.