Arizona Congressman Tables Crypto Classification Bill in US Congress
Arizona Congressman Paul Gosar has tabled a bill intended at achieving regulatory transparency to the crypto sector in the US, as per an article published by Forbes on December 19.
The Crypto-Currency Act of 2020 lays down the list of Federal agencies that should govern each type of digital assets. One of the important things done by the draft bill is explain three type of crypto assets, namely cryptocurrencies, crypto commodities and crypto securities.
Crypto commodities refer to commercial goods or services, whose interoperable data is held on a blockchain. Notably, in case of crypto commodities, market does not give any consideration to who produced them.
Likewise, Crypto-currencies are described as illustrations of the greenback or structured derivatives held on a blockchain. This includes reserve backed stablecoins and currencies identified by decentralized oracles or smart contracts.
Crypto-securities include all debt, derivative instruments and equity on a blockchain, apart from those enrolled and run as compliant money services businesses. The three types of crypto assets would be regulated by different organizations.
Each of those regulatory organizations will be referred to as the ‘Federal Crypto Regulator’ or ‘Federal Digital Asset Regulator’ for that category.
As might be expected, the Commodity Futures Trading Commission (CFTC) would be the agency in charge of crypto-commodities, and the Securities and Exchange Commission (SEC) would cover crypto-securities.
The Financial Crimes Enforcement Network (FinCEN) would regulate crypto-currencies. Crypto sector, which has been demanding regulatory transparency, is closely monitoring the developments.
Notably, the EU’s Fifth Anti-Money laundering Directive (5AMLD) will become effective on January 10, 2020, drawing regulatory certainty to the sector across the Atlantic.