US Congressman Paul Gosar, representative of the Republican state of Arizona, introduced a bill to provide regulatory clarity to the cryptocurrency market.
The bill, called the Cryptocurrency Law 2020, was presented in the House of Representatives, whose copy was obtained by Forbes magazine. The project seeks to clarify which federal agencies should regulate cryptocurrencies in the country.
The bill divided cryptocurrencies into three parts: "cryptocurrencies," "cryptocurrencies," and "cryptocurrencies." Therefore, he proposed a "federal cryptocurrency regulator" that would be responsible for each of the categories. The regulator would also be responsible for notifying the public about the necessary licenses and registrations.
The Commodity Futures Trading Commission (CTFC) has been proposed to regulate "cryptographic products"; the Securities Commission (SEC) for "cryptographic values"; and the Financial Crimes Execution Network (FinCEN) for «cryptocurrencies».
The bill also provided definitions for the three types of cryptocurrencies. "Crypto Commodities" means "economic goods or services"; "Cryptocurrencies" are defined as representations of the US dollar (USD) or "synthetic derivatives backed by a blockchain"; and "crypto-bonds," on the other hand, represent "all debt, equity and derivative instruments that depend on a blockchain."
“The Secretary of the Treasury, acting through the Financial Crimes Enforcement Network, will issue rules to require that each cryptocurrency (including stable currencies) allow tracking transactions in cryptography and the people involved in such transactions in a manner similar to the required by financial institutions in relation to transactions in foreign currency, "says the invoice.
Regulatory clarity has been sought by market participants and policy makers. Earlier this year, US lawmaker Warren Davidson reintroduced the Tokens Classification Act, seeking to give cryptocurrencies a clearer legal position in the US. UU.
More recently, the SEC and the US Financial Industry Regulatory Authority. UU. (FINRA) issued a joint statement that says the crypto industry must comply with various laws and requirements of US financial services. UU.