Congress Eyes New Regulatory Framework in 2020 Cryptocurrency Act
A new draft bill dubbed the “Crypto-Currency Act of 2020” aims to provide a comprehensive regulatory framework for crypto assets in the US.
If enacted in 2020, the proposal could become the key piece of legislation sought by industry leaders who are looking to legitimize the space and also provide legal clarity for consumers, investors and companies that interact with cryptocurrencies and crypto-related businesses.
“[The bill aims] to clarify which Federal agencies regulate digital assets, to require those agencies to notify the public of any Federal licences, certifications, or registrations required to create or trade in such assets, and for other purposes.”
The proposal outlines in broad strokes how the government and its appropriate agencies would regulate new digital instruments and crypto-related businesses, defining and distinguishing various types of crypto assets, providers, solutions and protocols.
List of covered terms
- Decentralized oracle
- Digital asset
- Federal digital asset regulator
- Reserve-backed stablecoin
- Synthetic stablecoin
The three agencies acting as “Federal digital asset regulators” will establish regulatory oversight. They are the Commodity Futures Trading Commission (CTFC), the Securities and Exchange Commission (SEC), and the Financial Crimes Enforcement Network (FinCEN), respectively monitoring crypto-commodities (CFTC), crypto-currencies (FinCEN) and crypto-securities (SEC). Synthetic stablecoins would fall under the purview of the SEC.
The bill also proposes that FinCEN be allowed to trace crypto transactions, as well as anyone engaging in such transactions, “in a manner similar to that required of financial institutions with respect to currency transactions.”
FinCEN could also require crypto businesses and individuals engaged in related activities to submit certain reports or records in the event of criminal, tax, or regulatory investigations.
You can check out the draft bill here.