By Sabina Muradova
On Mar 10, 2021
A group of representatives in the USA suggested forming a new working group with input from the SEC and the CFTC to evaluate crypto regulations. On Tuesday, US Lawmakers presented legislation aimed at clarifying cryptocurrency regulations in the country. For the crypto world, this means that Congress may soon try to clear up digital asset regulation in the US.
The bill introduced by Patrick McHenry (R-North Carolina) and Stephen Lynch (D-Massachusetts). It aims to establish a working group formed from industry experts and representatives of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) to assess the current legal and regulatory framework surrounding digital assets in the United States.
The legislation, which was also co-sponsored by Glenn Thompson (R-Pa.), Ted Budd (R-N.C.), and Warren Davidson (R-Ohio), was named “Eliminate Barriers to Innovation Act of 2021.”
The SEC responsible for regulating securities markets and protecting investors. On the other hand, the CFTC regulates U.S. derivatives markets, including futures, options, and swaps. Because of legal uncertainty in the country, the SEC and the CFTC did not have clear jurisdiction over cryptocurrencies. That’s why the bill intends to determine when the SEC or CFTC has control over a particular token or cryptocurrency. In this administration, it will be clarified under which conditions a cryptocurrency is security and under which conditions a commodity.
If the bill is approved, they will form a working group within 90 days. The group will include representatives from the SEC and CFTC, names from the private sector, and at least one researcher. During the studies, they will evaluate current cryptocurrency regulations in the USA. Within a year, this group should submit a report analyzing regulations and their impact on the primary and secondary markets. The report should also include studies showing how the new regime affected the U.S’s competitive position.
In the studies, proposals will be made on how to ensure “fairness, orderliness, integrity, efficiency, and transparency” in the market.
Disclaimer: All information provided in the content is for informational purposes only and should not perceive as an investment, financial, or trading advice. Any investment decision you make should be a personal choice based on financial knowledge, experience, and market research.