A new draft bill submitted by senior Republicans in the US Congress aims to offer a way for digital tokens to move from being treated as a security to becoming a commodity.
As is known, the SEC argues that most cryptocurrencies should be registered, claiming that they are a security.
Decentralized Tokens Will Not Be Considered Securities Under The Bill
The bill would provide a clear definition of when a project's tokens are sufficiently decentralized to no longer qualify as investment contracts.
The draft discussion, published by Patrick McHenry, Chairman of the House Financial Services Committee and Glenn 'GT' Thompson, Chairman of the House Agriculture Committee, is intended to better illuminate the way digital assets fit into current US financial law, while also creating regulations for the unique aspects of blockchain-based tokens. represents the latest attempt.
In the US, both the SEC and the CFTC are currently waging a sanctions war against crypto companies, including some of the largest trading platforms.
In the US, both the SEC and the CFTC are currently waging a sanctions war against crypto companies, including some of the largest trading platforms, and cryptocurrency-related rule work in the SEC has moved towards significantly restricting crypto ties with the traditional financial system.
While SEC Chairman Gary Gensler insists that current securities laws are sufficient, recent legislation may force him to modernize regulations for crypto-specific surveillance.
Other highlights of the bill are:
- Token projects aiming to be treated as commodities will have to go through a certification process with the CFTC that includes detailed disclosures about their operations.
- As institutions work on joint regulations, the legislation says existing crypto assets will be exempt from enforcement actions, which will allow firms and investors to continue trading during a potentially long wait for the SEC and CFTC to finish creating new rules for the industry.
- House Republicans also call for work on decentralized finance (DeFi) and immutable tokens (NFTs); which suggests that the regulation of these parts of the crypto economy can be pushed further.
*Not investment advice.
