A bill came out in the US Congress to resolve the uncertainty in the regulation of cryptocurrency.
House of Representatives Patrick McHenry (Republic) and Stefan Lynch (Democrat) proposed the ‘2021 Breaking Barrier to Innovation Act’ on the 8th.
The main purpose of this bill is to differentiate the nature of cryptocurrency and clarify the jurisdiction of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). In the meantime, the blockchain industry has expressed complaints that the SEC has not revealed clear standards for when cryptocurrency is regulated as a security.
When the’barrier removal’ bill passes through the US Congress, a working group consisting of representatives of the SEC and CFTC will be formed within 90 days. Financial companies and investor protection organizations also participate in the working group.
Within one year, the Working Group must submit a report that analyzes △regulation status, △the effect of the △regulation on the stock issuance and distribution market, and △the effect of the system on the competitiveness of the United States (in the financial market). This report will cover how the current (cryptocurrency) trust, private key management, and cybersecurity are legally handled, and how fraud prevention and investor protection should be done in the future.
“This bill aims to establish a systematic and comprehensive regulatory framework for digital assets for the United States” to CoinDesk US, director of policy at the Digital Chamber of Commerce, Amy Dayvine. In order to do so, the SEC and CFTC have come together in an official way.”
Article in English: Ji-Hyun Ham, Translation and Editing of CoinDesk Korea
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