New Draft Bill To Classify Crypto Assets Introduced In US Congress

A new draft bill which is aiming to classify the cryptocurrency assets in a new way has been recently introduced in the Untied States Congress by Paul Gosar. Gosar, who is an Arizona Congressman has introduced this bill and aimed at finally bringing regulatory clarity to the cryptocurrency industry in the country.

The cryptonews also show that according to a Forbes article published on December 19, the Crypto-Currency Act of 2020 sets out which Federal agencies are to regulate each type of crypto assets.

One of the key new things featured in the new draft bill is the classification of assets in three ways: crypto commodities, crypto currencies and crypto securities – as per a discussion draft of the proposed bill.

In this manner, crypto commodities are defined as economic goods or services stored on a blockchain with fungibility and ones the market treats with no regard as to who produced them. Crypto currencies are defined as representations of US currency or synthetic derivatives resting on a blockchain. Lastly, the new draft bill outlines crypto securities as ones that cover all debt, equity and derivative instruments on a blockchain.
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Each type of these crypto assets would fall under the jurisdiction of a different regulatory body in order to act as the ‘Federal Crypto Regulator’ or ‘Federal Digital Asset Regulator’ for that type.

As we might expect, the Commodity Futures Trading Commission (CFTC) would be the agency in charge of crypto commodities while the Securities and Exchange Commission (SEC) would cover the crypto securities. The crypto currencies would be regulated by the Financial Crimes Enforcement Network (FinCEN), accordingly.

While it remains to be seen how far will this new draft bill progress, it is very likely to gain support from the cryptocurrency industry which has been calling for regulatory clarity for some time.

As we previously reported, the EU’s Fifth Anti Money Laundering Directive (5AMLD) is set to come into force on January 10, bringing regulatory clarity to the industry on the other side of the Atlantic ocean.

All in all, the new draft bill is seen as a good initiative from the perspective of the Bitcoin and altcoin news today, mainly because it aims to regulate crypto assets in a completely new way.