US Senator introduces Cryptocurrency Act of 2020

Another US congressman proposed clarifying and determining which regulatory authority will be responsible for digital assets.

On March 9, Rep. Paul Gosar introduced the “Money-Crypto Act of 2020”, one draft It is likely that the supervision of digital assets will be delegated to the appropriate regulatory authority.

Schema specified by the proposal

As explained by Will Stechschulte – Paul Gosar's legislative assistant, to Cointelegraph, “the bill seems to not only bring clarity but also legalize cryptocurrency assets in the U.S.. “

Gosar's proposal divides digital assets into three categories: commodities-cryptocurrencies, currencies-cryptocurrencies, and securities-cryptocurrencies. These three categories will be overseen by their respective units, the Commodity Futures Trading Commission (CFTC), the Ministry of Finance, through the Financial Crime Enforcement Network (FinCEN), and the Securities and Exchange Commission. transaction (SEC).

For example, the expression of the bill also seems to reinforce the state of digital assets, such as Bitcoin, in the form of commodities rather than currencies. In the classification of “currency-cryptocurrencies”, the bill has a paragraph “representation of US currency or synthetic derivative financial instruments” – this is more reminiscent of stablecoins such as Tether (USDT). ).

While, the expression behind the classification of 'securities-cryptocurrencies', it is still familiar: “all the remaining debts, equity and derivatives on a blockchain or non-crypto ledger concentrate.”

For non-fungible tokens, the bill did not mention.

Updated bill from December

The bill is an updated version of the bill that was first leaked last December. The updated bill has expanded definitions for terms such as “Decentralized Cryptographic Ledger” and “Smart Contract” – concepts that US lawmakers are struggling to deal with.

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More importantly, the bill is updated more clearly on the definition of “preliminary” than “sole” liability. The exact meaning remains to be seen, but the change could undermine the legal status of the controversial cryptocurrency businesses that the SEC has no right to regulate.

Stakeholders in the industry participate in drafting the bill

Breaking the current standards of parliament, Gosar is presenting unique bills, without a co-financier. Stechschulte told Cointelegraph that “For an introduction, there will be only Gosar Representatives. (…) After the introduction, we hope to receive some serious support. ”

Ben Goldey, Gosar's communications director, explained and emphasized the industry's involvement before the bill was approved.

“Because this is an appropriate issue, we have been working with stakeholders and outside groups / experts to understand the type of industry that is needed. We choose to solicit stakeholder support before working with co-financiers. ”

One of the industry players involved in drafting the bill was pioneering Bitcoin investor Erik Finman.

Speaking to Cointelegraph, Finman said he initially approached Gosar's team to work on such a bill, because “I like their bravery and robustness to anything.”

Regarding the history of the bill and the development from the December release, Finman said that some industry insiders were considering:

“That bill was leaked, we tested a few things, that was our second draft. We have launched 32 more versions since then. ”

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According to CoinTelegraph
Translated by ToiYeuBitcoin

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