The Republican US congressman Paul Gosar intends to remove this uncertainty and has introduced a draft bill entitled “Crypto-Currency Act of 2020” in the House of Representatives. Tthe bill clarifies the classification of crypto-currencies into different categories and derives the responsibility of the US federal authorities from this.
The bill divides crypto-currencies into “crypto commodities”, “crypto-currencies” and “crypto-securities”. While the Commodity Futures Trading Commission (CTFC) is to be responsible for “crypto-commodities”, the draft envisages the Securities and Exchange Commission (SEC) for crypto-securities and the Financial Crimes Enforcement Network (FinCEN) for crypto-currencies.The bill also proposes that the Secretary of the Treasury, through the FinCEN, will issue rules that will allow, for each crypto-currency, the tracing of transactions by persons who carry out such transactions in a manner similar to that required by financial institutions in respect of foreign exchange transactions. In addition, all authorities shall be required to inform the public of all federal licenses and registrations that are required to create or trade in such assets.
The draft law also contains the definitions for the three categories of digital assets. According to these definitions, a crypto-commodity is described as an economic good or service that has full or substantial fungibility,the markets treat with no regard for who produced the goods or services, and rests on a or decentralized cryptographic ledger.
It remains to be seen whether the law will actually be approved and introduced. However, the new draft law shows a clear trend that governments around the world are addressing the issue of cryptocurrencies.
Author : Jake Simmons