A bill wants to provide a clear legal framework for cryptocurrencies

A bill on digital assets in the United States

This week at United Statesare two senators joined together to make a bill on cryptocurrencies. It is Cynthia Lummis, a Republican senator from Wyoming, and Kirsten Gillibrand, who represents the state of New York for the Democratic Party.

This text aims to provide a clear regulatory framework around cryptocurrencies. Cynthia Lummis is aware of the opportunities that our ecosystem brings and intends to unite innovation and consumer protection :

“The United States is the global financial leader, and to ensure that the next generation of Americans have greater opportunities, it is important to integrate digital assets into existing legislation and leverage the effectiveness and transparency of this asset class while managing risks. »

One of the central axes of this bill thus aims at define the roles of the different cryptocurrencies. This consists, for example, of analyzing the extent to which they offer voting rights or represent transferable securities. Different control points will then make it possible to establish rules adapted from case to case.

Cryptocurrencies such as Bitcoin (BTC) or Ethereum (ETH), whose nature makes them similar raw materialwould then see their regulation transfer to the area of ​​competence for Commodity Futures Trading Commission (CFTC).

Note that the senator from Wyoming has a reputation for being especially open to cryptocurrencies. In February last year, she defended the idea that the US Federal Reserve (Fed) would have an interest in buying Bitcoin (BTC).

👉 To move on – Find our guide to buying Bitcoin (BTC)

The regulatory sandbox

This bill is thus oriented around different themes, and one of them aims to make the United States one regulatory sandbox. Senators Lummis and Gillibrand hope federal and state regulators will be able to work with entrepreneurs in the blockchain ecosystem.

The priority should be given to innovation and allow experimentation with new products in a supervised manner. At the same time, emphasis must be placed on consumer education.

An advisory committee will also be set up to set out important guiding principles for this industry. This committee would bring together representatives of various stakeholders, both on the legal side and on the crypto ecosystem.

On the other hand, the text calls on the Government Accountability Office (GAO) to conduct a study on the integration of digital assets into pension savings, such as 401 (k) plans. The goal here is not to limit this possibilitybut to still identify the risks, to guarantee informed investment.

This perception of consumer education applies more generally to platforms. These will be held to best support their customers in their approach to blockchain technologies.

The other areas covered

Stablecoins are also great. This bill wants theirs impose 100% security as well as the duty to state reservations. This should make it possible to guarantee the possibility of redemption in a 1-on-one relationship.

At the same time the text would facilitate the issuance of stack coins for different financial institutions, provided that they comply with the legal framework.

Of tax breaks also expected. We can quote income from staking and mining, which will only be included in the tax calculation when they are sold.

Finally, this bill orders several studies, related to the activities of China and Russia, in order for the United States to establish cybersecurity standards. This is especially true of the digital yuan, which is suspected of disrespecting users’ privacy.

The road is still long before reaching a possible entry into force of the texts. Like any legal compromise, some points are beneficial and others more debatable, but they have the benefit of guiding the country. to a precise position.

In addition to overly strict rules, legal ambiguity sometimes slow down innovation and can actually discourage companies from trading.

👉 Also in the news – Outgoing MP Pierre Person presents a report on the crypto ecosystem

Source: Bill

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About the author: Vincent Mayor

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I fearfully discovered the blockchain world in late 2018 during my quest for financial freedom. Originally invested moderately, it was not until two years later that I took the plunge to bet everything on the movement that was taking shape at the time. Then I dedicate 2021 to training myself better to acquire more knowledge and seriousness. As I often like to say: I still have a billion things to learn. And what I know, I want to share with you.
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