A new bill introduced by United States House Democrat Don Beyer, titled “The Digital Asset Market Structure and Investor Protection Act of 2021,” envisions a comprehensive regulatory and legal framework for digital assets across the board.
The bill covers almost all of the major loopholes that still remain in the United States when it comes to cryptocurrency. One of its main aims is to establish legislative definitions for digital assets and digital asset securities, placing the former within the CFTC’s jurisdiction and the latter under the Securities and Exchange Commission’s.
The SEC and the CFTC would both be in charge of giving legal clarification on the regulatory status of the top 90% of crypto assets by market cap and trading volume.
The bill proposes that any digital assets not recorded on a public distributed ledger within 24 hours be reported to a CFTC-registered digital asset trade repository to avoid fraud.
The proposed investor protection measures include the Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency, the Secretary of the Treasury, the Securities and Exchange Commission, and the Commodity Futures Trading Commission to jointly submit a report to the appropriate committees.
The report should summarizes the use of decentralized finance and estimate the number and percentage of Americans using decentralized finance products and services versus the global usage and identifies the major decentralized finance products and services by estimated dollar volume usage.
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Recently during a meeting of the President’s Working Group on Financial Markets Treasury Secretary Janet Yellen warned regulators that the United States has to move swiftly to develop a regulatory framework for stablecoins, a fast-growing class of digital currencies.
Yellen cautioned in February that the exploitation of crypto assets, combined with cyber-attacks prompted by the global epidemic, was becoming a significant concern. She acknowledged the potential of these new technologies at the time, but also cautioned against her vision of reality, noting that cryptocurrencies have been used to launder the profits of online drug traffickers, they have been a tool to finance terrorism.
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