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Members of United States (U.S.) Congress are currently drafting a new bill clarifying digital asset regulation. The Cryptocurrency Act of 2020, if approved, will identify three types of digital assets along with their corresponding agencies responsible for regulation. Is Congress preparing to regulate Libra, or something more?
U.S. Congress and Digital Asset Regulation in 2019
2019 has been a busy year for the U.S. government in terms of digital asset regulation. At the beginning of the year, Congressman Warren Davidson (R-OH) introduced the Token Taxonomy Act of 2019.
In the summer, Facebook revealed plans for its controversial digital asset Libra. Since its initial unveiling, Libra has been met with skepticism from regulators across the globe and even initial backers such as Mastercard and Visa.
Now, as the year comes to a close, a discussion draft has surfaced from U.S. lawmakers. The bill, referred to as the ‘Crypto-Currency Act of 2020’, was introduced by U.S. Representative Paul Gosar (R-AZ).
According to the draft, the bill’s purpose aims to attribute regulatory clarity regarding which federal agencies are responsible for the different types of digital assets. The corresponding agencies are then responsible for informing the public on the appropriate licenses, certifications, or registrations needed to issue or trade digital assets.
The Cryptocurrency Act of 2020 Explained
The bill identifies three different types of digital assets. Each type has a corresponding federal agency required to provide regulation.
The three different asset-types include crypto-currencies, crypto-commodities, and crypto-securities. The bill went on to identify three agencies as ‘Federal Digital Asset Regulators’. These include the Commodity Futures Trading Commission (CFTC), the Securities and Exchange Commission (SEC), and the Financial Crimes Enforcement Network (FinCEN).
Each agency will work as the sole authoritative…