A Draft Bill To Classify Crypto Assets Now on The Table of US Congress
United States Representative,Paul Gosar has moved a draft bill which is targeted at bringing regulatory clarity relating to crypto asset to the cryptocurrency industry in the United States. This is in line with a Forbes article published on December 19th.
The Crypto-Currency Act of 2020 sets out which Federal agencies should regulate each type of crypto assets.
The draft bill describes three types of crypto asset; crypto commodities, crypto currencies, and crypto securities. This is according to a discussion draft of the proposed bill.
Crypto-commodities was described as economic goods or services, stored on a blockchain, with fungibility and which the market treats with no regard as to the producer of it.
Crypto-currencies are on the other hand explaied as representations of U.S. currency or synthetic derivatives resting on a blockchain. This covers reserve-backed stablecoins, and currencies determined by decentralized oracles or smart contracts.
And finally, Crypto-securities cover all debt, equity and derivative instruments on a blockchain, other than those which are operated and registered as complaint money services businesses.
Each type of crypto-asset would fall under the jurisdiction of a different regulatory body, to act as the ‘Federal Crypto Regulator’ or ‘Federal Digital Asset Regulator’ for that type.
The Commodity Futures Trading Commission (CFTC) will serve the agency in charge of crypto-commodities, and the Securities and Exchange Commission (SEC) would cover crypto-securities.
The Financial Crimes Enforcement Network (FinCEN) is charged with the duty to regulate crypto-currencies.