Two New Bills Introduced by the US Congress Concerning Cryptocurrencies
Cryptocurrency laws are getting a new shape in the US, in order to make it more consumer-friendly and competitive in the market. The main aim of the two laws is to address price manipulation and boost the economy in the new industry.
The two bills that have been passed are- Bill H.R.922-HANDLING PRICE MANIPULATION and Bill H.R.923- INCREASING COMPETITIVENESS. Earlier in the month of January, reps Darren Soto and Warren Davidson introduced two advanced blockchain-related bills. According to the first bill, the Virtual currency consumer protection act of 2019, it would now be mandatory to ensure that cryptocurrency investments are consumer-friendly and they assure a return. In other words, the act was issued to tackle the problem of price fluctuation in the industry.
The document further stated that the Chairman of the Commodity Futures Trading Commission (CFTC) will have to submit a report pertaining to the possibilities of price manipulation, which might include methodology, consequences on investors, the potential of profit, and more.
Furthermore, the virtual currency gets a new definition in the bill. It was stated to be a digital representation of value that does not have “legal tender status” and that functions as a medium of exchange, a store of value or a unit of account.
The second bill is a unique one in itself, which in a way shows that the US is yet to gear up to meet the demands of the industry. In fact, this would require another report from the CFTC chairman stating ways to increase the country’s competitiveness in the industry. This report will be in consultation with the SEC heads. Some of the things that the report will discuss in details will include the following:
- Comparison between the regulation of the US and other countries
- What the bill misses, if any
- Evaluations of the benefits of virtual currency
- Research on blockchain technology in the context of the US commodity market
- Other legislative proposals and recommendations
The bill will also include a proposal, which will require the lawmakers to propose a new structure in terms of regulation for the cryptocurrency. Apart from this, exchanges, which may include consumer protection, market supervision, and federal licensure.
It must be noted here that the above-mentioned bills come under the introduction of the Token Taxonomy Act. In fact, the act further states that cryptocurrencies should not be considered as securities and should be exempted from the securities law once it becomes fully acceptable in Federal law.