Press Release Unveils Crucial Cryptocurrency Legislation: Main Points Disclosed
Ready to Dig into the U.S. Digital Asset Market Bill on Google News? 🚀
A draft of the long-anticipated legislation for the market structure of digital assets in the U.S hit the scene earlier this week.
SEC vs CFTC: It's On! 🤐
After FIT21 took heat for clamping down on the SEC’s regulatory power, this new bill aims to clearly outline the responsibilities between the two—SEC and Securities, while CFTC handles commodities. The SEC would focus on crypto offerings deemed investment contracts, whereas the CFTC steps up to regulate commodities.
Justin Slaughter from Paradigm summed it up by stating: "The bill again would make the CFTC the dominant crypto regulator, but the SEC still has jurisdiction until a network establishes decentralization." 🌐cilicon Valley vibes
Ripple Got Bank, Bitwise Got Brains 🤑
In terms of decentralized finance (DeFi), some protocols might dodge regulations if they're non-custodial and don’t showcase any discretion.
Faryar Shirzad, Chief Policy Officer at Coinbase, chimed in: "There's no understating the urgency and bipartisan partnership with which Congress is moving to unleash crypto innovation in the United States." 🆙crypto revolution
The bill outlines that stablecoins are not classified as securities, but the details are still fuzzy here.
Lately, major stablecoin legislation has hit a snag in the Senate, with pro-crypto Dems considering withdrawing their support. Apparently, Senate Minority Leader Chuck Schumer has concerns about Tether, the big daddy of stablecoin issuers. 🚨flag ol' tron
But Wait, There's More! 🤩
The bill defines mature blockchains as those with fundamental value, substantial development, openness, impartiality, rule-based structure, and are not centrally controlled or owned (less than one-fifth of the supply).
For a project to be considered decentralized, no single party should have unilateral control, and if holders control more than 10% of the supply, they must be disclosed.
And guess what? The market's now more accessible to regular investors, as the bill removes net worth thresholds requirements. 🎉welcome aboard
Sources:[1, 2, 3, 4]
- The newly proposed U.S. Digital Asset Market Bill has created a stir, delving into the responsibilities of the SEC and CFTC regarding digital assets, with the SEC focusing on crypto offerings while the CFTC regulates commodities.
- The bill, amidst the debate following FIT21, solidifies the CFTC as the primary crypto regulator, with the SEC maintaining jurisdiction until a network achieves decentralization.
- In the realm of Decentralized Finance (DeFi), certainprotocols may evade regulations if they are non-custodial and don't exhibit any discretion.
- Faryar Shirzad, Chief Policy Officer at Coinbase, expressed the urgency and bipartisan cooperation in Congress for unleashing crypto innovation in the United States.
- The bill classifies stablecoins as not securities, but the specifics remain indistinct.
- Recent stablecoin legislation has encountered obstacles in the Senate, with pro-crypto Democrats contemplating the withdrawal of support due to concerns about Tether, a prominent stablecoin issuer.
- The bill defines mature blockchains as those with vital value, significant development, openness, impartiality, rule-based structure, and are decentralized or not centrally controlled.
- The bill removes net worth threshold requirements, making the market more open to regular investors.
Sources: [1, 2, 3, 4]
