April 2, 2019, | AtoZ Markets - Congress has recently introduced new crypto bills in the US. According to the local lawmakers the new crypto bills aimed to address price manipulation and boost the country’s competitive edge in the new industry.
The US crypto bill H.R. 922 in a brief
The congressmen Democrat Darren Soto and Republican Warren Davidson have introduced the new crypto bills in the US on January 30th, 2019. The first bill entitled as H.R. 922- Virtual Currency Consumer Protection Act of 2019 is aimed to handle crypto price manipulation issues. Also, this document defines a “virtual currency” as “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.”
According to the Virtual Currency Consumer Protection Act of 2019, the Chairman of the Commodity Futures Trading Commission will be required to submit a report, which details the potential for virtual currency price manipulation, including methods, susceptible classes, effects and harm to investors.
The US crypto bill H.R. 923 in a brief
The second bill - H.R 923. – U.S. Virtual Currency Market and Regulatory Competitiveness Act of 2019, would require the Chairman of the CFTC to submit the paper that contains details on CFTC collaboration with SEC and other relevant legislation authorities aimed to promote the country’s competitiveness in the field of the cryptocurrency and the blockchain technology. This document also requires the regulators to propose new cryptocurrency exchanges regulations to protect consumers protections, keep federal licensure, and market supervision.
US lawmakers continue to explore the crypto regulations.
The new crypto bills in the US were received after the introduction of the Taxonomy Law on Tokens. Following the expanding embrace of cryptocurrencies as a new stand-alone asset class, already mentioned representatives Darren Soto and Warren Davidson introduced their Taxonomy Law Act to the House floor on December 20th in 2018. While introducing the bill Davidson stated then, that their “ intent is to achieve a similar win for America’s economy and for American leadership in this innovative space.” The new document was aimed to domestically exclude cryptocurrencies from being regulated as securities, offer a specific definition of tokens, and treat crypto trades as like-kind exchanges
Taxonomy Law Act and the new bills’ similarities
It is worth noting, that the crypto definition in the Bill H.R. 922 and in the Token Taxonomy Act are quite similar. The resemblance in the digital assets interpretations in both documents gives a hint that politicians on behalf of Congress are trying to define a term for future crypto rules.
Financial experts, however, caution that the new crypto bills in the US will not become applicable laws for a long time. First, he will have to hand over the actions of the subcommittee and take over the House of Representatives. Then he had to go through the Senate, and then sign the president.
Please share your thoughts in the comment box below.