Eternity Law International — News — US Congress introduces new bills on cryptocurrency

US Congress introduces new bills on cryptocurrency

Published:
October 7, 2020

The blockchain technology goes to a new level. Recently the US Congress presented two new bills governing the price setting procedure in the cryptocurrency market. The main goal of these acts is to create competition, increase market activity and attract traders on the crypto market in the US.

H.R. 922 – virtual currency consumer protection act

One of its major achievements is providing the official term of “virtual currency”. Digital representation of value that does not have legal tender status and that functions as a medium of exchange, a unit of account, or a store of value.

In general, the act related to the process of price settings and intended to solve the problem of pricing speculations.

According to the bill, the price-tracking function relies on the Chairman of the Commodity Futures Trading Commission (CFTC). One of duties is to prepare a detailed report, which covers all issues concerning existing and possible price speculations. This report should also include the hidden risks for investors on crypto market, so they can protect their assets.

H.R 923. – U.S. Virtual currency market and regulatory competitiveness act of 2019

This act puts on the Chairman of CFTC another important function – comparison of national and international legislation in part of blockchain regulations and preparation of the legislative proposals and recommendations. The required information should be prepared together with the relevant federal agencies and included the Chairman’s report.

The bill mentioned above also suggests a new approach to the cryptocurrency exchange regulation. The main differences of the proposed system are improved market governance, issuance of federal licenses for the market participants and consumer protection. The 922 and 923 acts promulgated after the introduction of the Token Taxonomy Act, which suggests putting the cryptocurrency to the separate category.

For now, the cryptocurrency regulated by the security legislation, which does not cover all the issues concerning the constantly growing virtual currency market. If the 922 and 923 adopted, they will function as independent legislative acts without binding to the securities.

The token taxonomy act

The Token Taxonomy Act also contains a definition of virtual currency, which is quite similar to the one proposed in the 922 bill. The U.S. Congress lays a foundation for future legislative basis in the field of virtual currency activities.

It is unknown for this time if the 922 and 923 bills will be pass, as they have to be consider by the subcommittees and the House of Representatives. After that, the bills are transfer to the Senate and then signed by the President.

In any case, the existence of such bills indicates the readiness of the state to support and develop the cryptocurrency market, so it is a promising field for investments and business.

Please join our Telegram channel in order to keep updated for the new offers.

You could be interested

Poland CASP License & VASP Registration 2025

2025 will see Poland continue as one of the flagship fast-moving centers in Europe for digital asset enterprises. The MiCA framework is finally expected to come into force, so the Polish regulators are updating the national licensing as well. This move has licensing regimes for crypto firms migrating from the VASP registration to more stringent...

Dominican Republic Gambling License

The idea that a pleasant vacation can be a source of profit will delight any vacationer. But when setting up a gambling business, you will need a gambling license. This applies to any jurisdiction, including the Dominican Republic. There is a real example of this development of events. The authorities of the Dominican Republic do...

Swiss Regulated VASP for Crypto and Precious Metals for Sale

Recent years have shown that those who managed to integrate into the digital asset market are now in a much more advantageous position. But while most countries are still trying to understand what cryptocurrency is and how to control it, Switzerland has long since not just decided everything – it has created a real ecosystem...

Portuguese Residence Permit for Company (Sole Proprietorship) Registration in Portugal

Incorporating a firm in Portugal can be a strategic move for global businesspersons, and securing a residence permit (D2 Visa) is a crucial step in the process. The local authorities offer a streamlined mechanism for acquiring such permission for the business owners. This article aims to demystify the intricacies of this process for businesspersons looking...

Denmark Authorised Crypto Companies

Denmark distinguishes itself as one of the foremost trailblazers in Europe concerning cryptocurrency governance. With its lucid legislative infrastructure, advantageous fiscal frameworks, and dedication to technological progression, it is evident why countless visionaries aspire to establish authorised crypto companies in Denmark. The nation’s forward-looking stance on digital finance cultivates a dependable and fortified ecosystem for...

Five things you didn't know about a merchant account

What do you know about merchant accounts? We all know that a merchant account is a legal agreement between a merchant – a merchant and a processor. It exists in the form of a dedicated bank account that allows you to accept and process financial transactions made by your customers using debit or credit cards....

Related posts

MetaQuotes Introduces New Requirements: Impact on White Label Solutions

The developer of MetaTrader platforms has updated the list of documents required to access the White Label program. Many companies that do not have such a tool as their own software, turn to the platforms of leading technology providers in the Forex market, such as MetaQuotes Software, through White Label. Recently, MetaQuotes Software, the creator...

Cryptocurrency offshore license

Creating crypto organizations in offshores is not as complicated as it seems. Main advantages of obtaining such a permit as cryptocurrency offshore license is ability to pay tax at a low rate, or to exempt your company from taxation altogether. In addition, offshore offers increased levels of protection of personal information of the enterprise’s owners....

NEW CRYPTOCURRENCY REGULATIONS IN ESTONIA

New law which regulates crypto license holders entered into force on 10.03.2020. Key points: Two previously existed crypto licenses are combined into single Virtual currency service provider license. Share capital must be at least 12,000 eur, which has been fully paid. Physical office in Estonia is required. Management Board Member/Compliance Officer must be a resident...

Investment in Cryptocurrency

INVESTMENT IN cryptoCURRENCY – MINING OR ICO? The cryptocurrency and ICO market today allows the business environment to take part in successful business projects of the digital modern economy. How is it possible now to apply existing prospects in the most competent way? And where is the best place to invest money – in the...

New bill on the cryptocurrency

The government of the European Union implements rules for the settlement of cryptomoney to support AML policy. The new draft law on the cryptocurrency will change everything. In April 2018, the European Parliament supported the directive on measures aimed at eliminating the cryptocurrency in the financing of terrorist operations and money laundering. The law will...

Company for cryptocurrency in UK

The UK is on the list of the most favorable jurisdictions for doing business on mining and exchange of cryptocurrencies. In addition, such start-ups in the initial stages even receive support from the state. So far, in the UK, activities related to digital money are still not regulated at the legislative level. The Office for...

Discover our services

The international company Eternity Law International provides professional services in the field of international consulting, auditing services, legal and tax services.

Ready-made companies for sale

Companies with a bank account around the world

Banks for sale

Established Banks for sale

Ready-made licenses for sale

Forex, cryptocurrencies, gambling, EMI, PSP, SVF, MSO, DLT

Licensing

Forex licenses, cryptocurrencies, gambling, EMI, PSP, SVF, MSO, DLT

Offshore company registration

Expert advice on the acquisition of an offshore company

Open a bank account

Open bank accounts in more than 120 banks around the world
Fill the blank: