Congressman Proposed Bill to Provide Definitions For Crypto Assets in the US

By Shannon Wilson | December 22, 2019

Paul Gosar – a US Congressman from Arizona – has reportedly proposed a new law, with a primary goal of providing clear regulations to the crypto sector across the US. 

Reported by Forbes on December 19, the draft bill – The Crypto-Currency Act of 2020 – was particularly proposed to determine the Federal agencies will be tasked with coming up with regulatory clarity for every kind of crypto asset.

One of the aspects the bill sets out to look closely into, is to finalize the definition of 3 kinds of digital assets: crypto commodities, crypto currencies, and crypto securities

Crypto-commodities will be viewed as economic goods or services that have the fungibility feature, with blockchain employed for safekeeping, and the market does not have to worry about the producer of the assets. 

Crypto-currencies will be generally considered as a representative figure of the U.S. currency or synthetic derivatives resting on a blockchain. This definition also applies for reserve-backed stablecoins, along with currencies which are associated with decentralized oracles or smart contracts.

Crypto-securities include every blockchain-based debt, equity and derivative instruments, other than the ones that works as, are legally registered as complaint money services businesses.

Every individual regulatory agency will have the jurisdictional power over one particular type mentioned above, with the CFTC handling crypto-commodities, and the SEC would take care of crypto-securities, and FinCEN is in charge of the last one.

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