In the latest pro-crypto development in the U.S., on March 9, 2020, Representative Paul Gosar (R-AZ) introduced the “Crypto-Currency Act of 2020” which seeks to create a conducive environment for digital assets in the country.
Crypto-Currency Act of 2020 Promises A Conducive Regulatory Framework
Historically anti-crypto governments the world over are slowly but surely adopting a softer stance towards digital currencies, as according to a recent development, a U.S. Congressman introduced the “Crypto-Currency Act of 2020” which aims to provide clarity and legitimacy to crypto assets in the country.
Essentially, Gosar’s bill divides digital assets into three categories. These are, crypto-commodity, crypto-currency, and crypto-security. These three categories, respectively, would come under the purview of the Commodity Futures Trading Commission (CFTC), the Secretary of the Treasury via the Financial Crimes Enforcement Network (FinCEN), and the Securities and Exchange Commission (SEC).
The bill notably classifies the legal definition of digital assets like Bitcoin as crypto-commodities rather crypto-currencies. Interestingly, in the proposed legislation, cryptocurrency is defined as “representations of United States currency or synthetic derivatives.” The bill also makes no mention of non-fungible tokens (NFT).
The bill defines crypto-securities as:
“All debt, equity, and derivative instruments that rest on a blockchain or decentralized cryptographic ledger.”
The bill also hints at the involvement of industry stakeholders during its draft preparation. Communications Director for Gosar Ben Goldey, commented on the industry engagement aspect of the bill, saying:
“Since this is such a niche issue, we worked with stakeholders and outside groups/experts to get a good sense of the kind of clarity that the industry needed. We chose to gather stakeholder support before working toward cosponsors.”
Governments Slowly Warming up to Cryptocurrency
The pro-crypto legislation introduced by the Congressman follows recent bullish developments elsewhere in the world which signify a steady change in world governments’ stance toward digital currency.
BTCManager reported on March 4, 2020, how the Supreme Court of India quashed the Reserve Bank of India’s (RBI) two-year long ban on financial institute-powered cryptocurrency trading in the country, calling the diktat “unconstitutional.”
In similar news, South Korea recently passed a landmark cryptocurrency bill that is widely recognized as the harbinger of efficient and growth-conducive crypto regulations in the country. Whether the world’s largest economy follows suit, only time will tell.