February 23, 2024

The US has prepared a new version of the “Cryptocurrency Law 2020”

The United States has prepared a new version of the “Cryptocurrency Act of 2020”

On March 9, Congressman Paul Gosar introduced a new version of the “Cryptocurrency Act of 2020,” a billaimed at identifying and regulatingUS digital asset industries. Will Stechshulte, Gosar’s assistant, noted that "the bill is designed to provide not only clarity, but also the legitimacy of crypto assets in the United States."

As we reported earlier, the bill divides cryptoassets into three types:

  • "crypto — exchange commodity"
  • "crypto — security"
  • "crypto — currency".

The new law also offers a “federal regulator” for each of the categories:

  • Commodity Futures Trading Commission (CTFC) will regulate the first,
  • Securities and Exchange Commission (SEC) second,
  • Financial Crime Prevention Network (FinCEN) last.

Interestingly, according to this classificationBitcoin is defined as “crypto — a commodity" rather than a cryptocurrency. The classification of “cryptocurrency” means “representation of U.S. currency or synthetic derivatives,” which includes Tether (USDT) and other stablecoins. “Crypto — security" represents "all debt, equity and derivative instruments on the blockchain."

Unlike the first version published in December, the updated bill contains expanded definitions of terms such as “decentralized cryptographic registry” and “smart contract”.

So, the term “decentralized cryptographic registry” is defined as an autonomous blockchain that:

  • protected by such coinage mechanisms as proof-of-work, proof-of-stake or otherwise;
  • is unchanged and cannot be overwritten;
  • Requires cryptographic connectivity between blocks of transaction data;
  • does not require permission from a third party to participate, you only need an Internet connection;
  • all transactions are final, not controlled by any entity, state or private person.

The term “smart contract” is defined as a computer protocol designed to: digitally simplify, verify or enforce contract terms without third parties.

Ben Goldie, Gosar's communications director, commented to Cointelegraph said:

“Since this is a niche problem, we worked with industry representatives and external groups / experts to get an idea of ​​the clarity that this market needs.”

One of the industry representatives involved in the development of the bill was early bitcoin investor Eric Finman. He said:

“This bill, which was published in December, was our second draft. Besides him, we had thirty-two more versions. ”

Rate this publication