December 9, 2022

Digital Currency Classification Bill Presented to US Congress

US Congressman Paul Gosar introduced a bill on the classification of digital currencies, establishing which federal authorities are required to regulate a particular type of crypto asset.

Gosar believes that this bill will introduceclarity in the regulation of the cryptocurrency industry in the country. According to the document, digital currencies are divided into three types: cryptocurrency exchange goods, cryptocurrencies and cryptocurrency securities.

Under cryptocurrency exchange commoditiesIt refers to economic goods or services based on the blockchain that can be exchanged regardless of who their producer is. This asset group should be regulated by the US Commodity Futures Trading Commission (CFTC).

Cryptocurrencies have been identified asderivative financial instruments based on the blockchain, as well as digital currencies, the parameters of which are set by smart contracts or decentralized oracles. This category should be controlled by the United States Financial Crime Prevention Network (FinCEN).

To cryptocurrency securities, according tothe bill includes debt instruments, equity financial instruments and blockchain-based derivatives. They must be under the control of the US Securities and Exchange Commission (SEC).

Last week, SEC chairman Jay Clayton(Jay Clayton) stated the need for a proactive approach to cryptocurrency regulation. Clayton believes that blockchain promotes capital formation and provides opportunities for institutional and retail investors.