Regulation
US Crypto Bill
What is the news talking about?
The bill could change the way the crypto industry is regulated since it treats cryptocurrency as a commodity rather than a security. Additionally, it reduces SEC oversight and gives major regulatory power to the Commodity Futures Trading Commission (CFTC). The digital assets industry has long complained that conventional SEC disclosure rules do not apply to them. Additionally, the bill establishes a single registration and transparency system for digital asset businesses. A number of senators have introduced their own bills aimed at reforming crypto rules, so it will struggle to pass this chamber.
Despite US securities regulator SEC’s unusual warning about the financial dangers associated with cryptocurrencies, the US House of Representatives on Wednesday approved a bill to create a new regulatory framework for crypto -currencies.
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Why is it important?
The 21st century Financial Innovation and Technology Actproposed by the Republicans, was adopted with a bipartisan vote of 279 to 136. However, according to media reports, the Senate’s consideration of the bill remains uncertain at the moment. Lawmakers in favor of the bill say it will make enforcement easier. understand and will help businesses grow.
The industry gets a surprising boost with the House approval, and the SEC has hinted it may approve applications for cash exchange-traded funds. The bill would “create new regulatory loopholes and undermine decades of precedent for oversight of investment contracts.” exposing investors and capital markets to immeasurable risk,” warned SEC Chairman Gary Gensler. In a different vein, cryptocurrencies should be regulated the same as conventional assets, according to Gensler, who used high-profile lawsuits, fraud cases, bankruptcies and failures as evidence. He said legal safeguards given to investors by securities laws would be ignored if investment contracts recorded on a blockchain were to be included in the bill. Gensler further argued that the bill was flawed because it gave issuers of crypto investment contracts the power to self-certify their products as digital productsgiving the SEC only 60 days to dispute these claims.
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Benefits
1. The bill clarifies crypto regulations, treating cryptocurrencies as commodities, simplifying compliance for businesses.
2. Shifting regulatory authority to the CFTC reduces SEC oversight, addressing industry concerns about conventional disclosure rules.
3. The bill’s single registration system improves transparency and aims to foster growth in the digital assets sector.
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