Regulation
US Cryptocurrency Law
What are the news talking about?
The bill could change how the cryptocurrency business is regulated as it treats cryptocurrencies as commodities rather than securities. It also reduces SEC oversight and gives more regulatory authority to the Commodity Futures Trading Commission (CFTC). The digital asset industry has long complained that the SEC’s conventional disclosure rules do not apply to them. Furthermore, the bill establishes a single registration and transparency system for digital asset businesses. Numerous senators have introduced their own bills to reform cryptocurrency rules, so it will be difficult to pass through that chamber.
Despite the SEC’s unusual cautionary note about the financial dangers associated with cryptocurrencies, the U.S. House of Representatives on Wednesday passed a bill to create a new regulatory framework for cryptocurrencies.
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Because it is important?
The 21st century Financial Innovation and Technology Actproposed by Republicans, it was approved by a bipartisan vote of 279 to 136. However, according to media reports, the Senate’s consideration of the legislation currently remains uncertain. Lawmakers in favor of the bill say it will make regulations easier to enforce, understand and help businesses expand.
The industry is getting a surprising boost with House approval, and the SEC has hinted it may approve exchange-traded fund applications. The bill “would create new regulatory gaps and undermine decades of precedent regarding the oversight of investment contracts, placing investors and capital markets at immeasurable risk,” SEC Chairman Gary Gensler warned. From a different perspective, cryptocurrencies should be regulated similarly to conventional assets, according to Gensler, who used high-profile court cases, fraud cases, bankruptcies and bankruptcies as evidence. He argued that legal protections afforded to investors by securities laws would be ignored if investment contracts recorded on a blockchain were to be included in the bill. Gensler further argued that the bill was flawed because it gave issuers of cryptocurrency investment contracts the power to self-certify their products as digital goodsgiving the SEC just 60 days to dispute these claims.
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Benefits
1. The bill clarifies cryptocurrency regulations, treating cryptocurrencies as commodities, which simplifies compliance for businesses.
2. Transferring regulatory authority to the CFTC reduces SEC oversight, addressing industry concerns about conventional disclosure rules.
3. The bill’s single registration system improves transparency and aims to foster growth in the digital assets sector.
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