A freshly proposed bill by US Rep. Don Beyer of Virginia reportedly suggested an extensive crypto assets-focused regulatory and legal framework throughout the board.
Specifically, the bill – dubbed “The Digital Asset Market Structure and Investor Protection Act of 2021” – reportedly addressed nearly every major gray area revolving around crypto, which is still existing.
One of the main objectives of the bill is reportedly to come up with statutory definitions focusing on virtual assets and digital asset securities, placing them under the concern scope of the CFTC and the US SEC, respectively.
Both the CFTC and SEC would reportedly take up the responsibility of offering legal certainty, when it comes to the regulatory status of the top 90% of crypto assets by market cap and trading volume.
Additionally, the bill reportedly looks to achieve formalization regarding requirements, regulation-wise, for every virtual asset and virtual asset securities under the Bank Secrecy Act, granting the two the classification of “monetary instruments”, in an attempt to amp up the transparency level, as well as reinforcing reporting and Anti-Money Laundering enforcement.
Regarding CBDCs, the bill reportedly plans to create the appropriate circumstances, enabling the Federal Reserve to carry out the issuance of a digital dollar, via explicitly designating it as the sole agency having the authoritative power to get it done.
The bill further urged for the U.S. Treasury Secretary to possess the power to either allow or ban U.S. dollars and other fiat-based stablecoins.
As for investor protection initiatives, the bill suggested the requirements for the Federal Deposit Insurance Corporation (FDIC), National Credit Union Administration (NCUA) and Securities Investor Protection Corporation (SIPC) to generate explicit clarifications, regarding the “non-coverage” of the digital asset sphere, in order to help investors fully acknowledge the insurance absence of their assets, the same as traditional bank deposits or securities.
For averting fraud, the bill reportedly recommended that any digital assets that are not recorded on a public DLT within a 24-hour timeframe need to be reported to the digital asset trade repository that finalized their registration with the CFTC.