The US may soon join other countries with clear-cur regulations on the trading and use of cryptocurrencies, as the ‘Crypto-Currency Act of 2020’ draft bill has been introduced into the US Congress.
The aim of this proposed law is as follows:
Define which federal agencies will be in charge of regulating cryptocurrencies and other digital assets.
Provide specific classification of crypto-based assets as crypto-currencies, crypto-securities, and crypto-commodities.
Define which regulatory authority will oversee each crypto classification. The bill proposes the Commodities and Futures Trading Commission as the crypto-commodities regulator, the Financial Crimes Enforcement Network (FinCEN) as the regulator of cryptocurrencies and other blockchain-based synthetic derivatives as well as USD-based stablecoins. It also proposes the Securities and Exchange Commission (SEC) as the regulator of all blockchain-based debt, equity, and derivative instruments.
If this bill is passed into law, it removes all existing ambiguities surrounding crypto regulation in the US and will also define what protocols that ICOs and securitized tokens need to follow to operate legally.
However, there is still a wide ranging debate over how crypto-assets will be classified and how specific digital assets would come under regulation. For instance, there is already a bill which seeks to remove digital tokens from existing regulatory oversight of US financial watchdog agencies. 2020 may therefore see more debate in this regard.
Australian Crypto Regulators Withdraw Licenses of 3 Exchanges
In other news, the Australian cryptocurrency regulatory agency has withdrawn the operating licenses of three crypto exchanges, citing connections to organized crime as the reason for the action.
In Australia, all cryptocurrency exchanges are expected to be licensed by the anti-money laundering agency known as AUSTRAC. AUSTRAC withdrew the licenses of MK Buy and Sell, Howzat Domains and AUSCOIN ATM for suspected links to criminal activity. Under the 2017 law that setup the agency, AUSTRAC can shut down an exchange on mere suspicion without the need to establish concrete proof.
It is unclear at this time if the exchanges will challenge the license withdrawals.