- Cryptocurrency act of 2020 to clarify the power of each government agency to regulate the crypto space
The Cryptocurrency Act of 2020 has been introduced into the House of Representatives, and seeks to clarify the power of each government agency to regulate the crypto space.
Up to now multiple government agencies have been competing to regulate the crypto space, leading to a confusing mixture of laws. This is suppressing the crypto space, since crypto companies can be attacked by multiple federal agencies. For example, the Securities and Exchange Commission (SEC), the Commodities Futures Trading Commission (CFTC), the Internal Revenue Service (IRS), the Financial Crimes Enforcement Network (FinCEN), and the Department of the Treasury have been issuing laws with overlapping jurisdiction, and these laws often do not agree with each other.
The bill proposes that the CFTC regulate crypto-commodities, the SEC regulate crypto-securities, and that FinCEN regulates crypto-currencies. The bill defines crypto-commodities as economic goods or services, crypto-currencies as digital representations of fiat like stable coins, and crypto-securities as debt, equity, and derivatives instruments on the blockchain.
It remains to be seen if this law will pass, but if it does it may give the crypto space in the United States a better chance to thrive.
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