Eternity Law International News US Congress introduces new bills on cryptocurrency

US Congress introduces new bills on cryptocurrency

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.

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