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The United States’ Legislative Push for Crypto Regulation
The fate of the cryptocurrency industry in the United States is currently in the hands of the country’s legislative branch. Congress has been presented with numerous bills over the past nine months to regulate the crypto space. Four key bills have emerged, each proposing directives that could shape the future of cryptocurrency in the country.
The First Bill: Financial Innovation and Technology for the 21st Century Act
- Establishes a concrete procedure for categorizing digital assets as commodities or securities
- Gives regulatory authority to the Commodity Futures Trading Commission (CFTC) to regulate digital commodities
- Clarifies the Securities and Exchange Commission’s (SEC) jurisdiction
- Proposes a pathway for securities to be re-designated as commodities
The Second Bill: Responsible Financial Innovation Act (RFIA)
- Delineates the roles of the SEC and CFTC in cryptocurrency regulation
- Enhances consumer protection and prevents incidents like the FTX debacle
- Addresses digital asset tax treatment
- Calls for impartial processing of bank applications from cryptocurrency firms
- Limits the issuance of stablecoins to depository institutions
The Third Bill: Digital Asset Market Structure Bill (DAMS)
- Outlines the responsibilities of the SEC and CFTC in cryptocurrency regulation
- Establishes a framework for determining whether specific cryptocurrencies are securities or commodities
- Requires certification from the SEC for decentralization before granting commodity status
The Fourth Bill: Digital Commodity Exchange Act (DCEA)
- Allows stablecoin providers to register as fixed-value digital commodity operators
- Gives regulatory power to the CFTC to regulate spot exchanges
- Promotes transparency and compliance within the industry through voluntary registration with the CFTC
Hot Take
The United States is taking significant steps towards regulating the cryptocurrency industry. These four key bills aim to provide clarity, protection, and regulatory oversight. While there may be debates and amendments along the way, it is clear that the government recognizes the importance of establishing a framework for the future of cryptocurrency in the country.