New Cryptocurrency Draft to be Introduced by the US

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Overview-

  • A new cryptocurrency draft bill for the regulations of cryptocurrency and other digital assets to be introduced.
  • The draft bill named as ‘Cryptocurrency Act of 2020’.
  • The Bill provides the clarification of the regulations, categories of the digital assets, and the different agencies that will be handling these different categories.

With everyone preparing for the holiday season and end of the year 2019, the US lawmakers have been developing a new draft for the regulations for the digital assets, which includes the cryptocurrencies as well. Paul Gosar has introduced the draft bill, an Arizona Congressman called the “Cryptocurrency Act Of 2020,” according to Forbes published article on December 19th.

The Bill gives a detailed explanation of the different categories of the digital assets and which Federal Agencies would be handling the jurisdiction of these categorized digital assets. According to Bill, the various types of these digital assets are- 

  1. Crypto-commodities – A tradable asset, i.e., economic goods or any services that exist on the blockchain network and the markets do not regard as to who produced the products and services.
  2. Crypto-currencies – means representations of United States currency or synthetic derivatives resting on a blockchain or decentralized cryptographic ledger. 
  3. Crypto-securities will cover all the debt, the equity, and the other derivative instruments rest on a blockchain or decentralized cryptographic ledger.

The Commodity Futures Trading Commission (CFTC) will be taking charge of crypto-commodities. The Securities and Exchange Commission (SEC) would cover crypto-securities. The Financial Crimes Enforcement Network (FinCEN) will further work on regulating the cryptocurrencies. 

Earlier this year, Warren Davidson had also reintroduced the Token Taxonomy Act to clarify the uncertainty of the regulations. But it is still uncertain at this point if Davidson and Gosar’s bills will move ahead and the new year might provide the clarification on these bills.

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