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Two Bills Submitted to US House to Define Crypto And Decide Regulator For Exchanges

By Emily Rys | October 4, 2020

Two major bills recently proposed to the US authority, where one looks to finalize “securities” definition for crypto, the other aims to finalize the entity in charge of regulating exchanges. 

Specifically, the first one – The Securities Clarity Act – submitted by Representative Tom Emmer (R-MN) – reportedly looks to set up a new distinction in securities law between an investment contract and the “an asset sold pursuant to an investment 22 contract, whether tangible or intangible (including a 23 asset in digital form).”

The new bill is reportedly a responding initiative towards the existing controversy, regarding the Simple Agreement for Future Tokens framework, regulating distribution for currency such as EOS, creating a high level of controversy in the case of Telegram. 

Should it be approved, the act would reportedly establish a restriction towards the Securities and Exchange Commission, from pursuing digital assets on the basis of the initial contracts under which they were sold.

Representative Mike Conaway (R-TX) – with the assistance from several co-signers from the Blockchain Caucus, reportedly proposed the Digital Commodity Exchange Act to the House Agriculture Committee. 

The bill would reportedly provide the CFTC – answering to the Agriculture Committee – with jurisdictional power over crypto exchanges. The registration would free exchanges from dealing with the mandatory patchwork of state-by-state licensing of money service providers need.

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