The Cryptocurrency Act To Be Discussed In 2020 By The US Congress

By Boris Dzhingarov

We might end up seeing some clear crypto regulations in the US in 2020 as the Congress gets ready to consider a brand new bill that details digital asset oversight modalities. Based on information offered by Forbes, the new bill is called “Cryptocurrency Act of 2020”. Its main goal is to offer a clear regulations framework in the country. This starts with defining what a digital asset is and establishing identification protocols.

The new bill officially recognizes 3 digital token types:

  • Crypto-commodities
  • Cryptocurrencies
  • Crypto-securities

Crypto-securities practically cover all the debt instruments, equity instruments and derivatives using blockchain technology.

Another important part of the bill is that it states what Federal regulators are responsible for and their official duties in regards to cryptocurrency. There would thus be 3 regulatory agencies:

  • SEC – Securities and Exchange Commission
  • FinCEN – Financial Crimes Enforcement Network
  • CFTC – Commodity Futures Trading Commission

The SEC would be tasked with overseeing crypto-securities. CFTC would be responsible for crypto-commodities. The FinCEN has to create a framework that is to be used to trace transactions with cryptocurrency.

These 3 regulators need to publicly publish licensing lists and certification requirements as operations are handled in the US. The 3 agencies also have to liaise among themselves with the purpose of providing proper coverage so that the regulations can be applied.

Crypto stakeholders hope that this bill will offer clarity on US crypto regulations. The current regulations are not at all clear and are not appreciated by anyone.

An important thing in this new bill is that the FinCEN is presented as crypto regulator. Then, we might end up seeing what is security and what is not in relations to digital tokens.

US commentators are now divided when it comes to what is a security and what is not. There are US lawmakers that tried to introduce a crypto bill in the past so that digital tokens become exempt form the securities regulations in place.

In 2019, we saw many politicians and important industry people talk about crypto matters. Stakeholders actually talked in front of the US congress after Libra was announced. 2020 is the year when the government should sovereign all digital currencies. If this is going to be effective or not remains an entirely different matter.