June 19, 2024

US Congress will review the “Cryptocurrency Law 2020”

The US Congress will consider the "Cryptocurrency Act of 2020"

US Congressman Paul Gosar introduced a bill aimed at clarifyingregulation of cryptocurrencies. The bill, called the Cryptocurrency Act of 2020, defines which US financial regulators should regulate the cryptocurrency industry.

The bill divides crypto-assets into three types:

  • "crypto — exchange goods (commodity)",
  • "crypto — security"
  • "crypto — currency".

The bill proposes a "federal regulator"for each category: the Commodity Futures Trading Commission (CTFC) will regulate the first, the Securities and Exchange Commission (SEC) the second, and the Financial Crime Prevention Network (FinCEN) last.

The bill also contains definitions for three types of crypto assets:

  • “Cryptocommodity” means “economic goods or services”;
  • Cryptocurrency is defined as the representation of the US dollar (stablecoin) or “synthetic derivative on the blockchain”;
  • "crypto — security" represents "all debt, equity and derivative instruments on the blockchain."

"Secretary of the Treasury, acting through FinCEN,must issue rules requiring that each cryptocurrency (including stablecoins) allows you to track transactions and persons involved in such transactions in the same way as the requirements of financial institutions regarding foreign exchange transactions ”, - the bill says.

Earlier this year, Congressman WarrenDavidson introduced his bill to determine the legal status of cryptocurrencies in the United States. Most recently, the CFTC, FinCEN and SEC issued a joint statement saying that cryptocurrencies should operate similarly to banking and comply with US financial services laws.