Posted 1 year ago | by @devadmin

Lawmakers have proposed new legislation to attempt to clarify crypto regulations in the U.S. and help determine the age-old question of what qualifies whether or not a digital asset is a security.

Representatives Patrick McHenry (R-N.C.), Stephen Lynch (D-Mass.), Glenn Thompson (R-Pa.), Ted Budd (R-N.C.) and Warren Davidson (R-Ohio) introduced the legislation  entitled the “Eliminate Barriers to Innovation Act of 2021.”

The law’s objective is to establish the jurisdiction of the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) over cryptocurrencies. The SEC oversees assets classified as a security, while the CFTC is in charge of commodities. Both organizations will be asked for their input as per the bill, Coindesk reported.

The bill, if it passes, would create a working group to evaluate the legal and regulatory frameworks governing digital assets in the U.S. The group would form within 90 days after the approval of the bill. It will comprise industry experts from the SEC and CFTC and non-governmental representatives from organizations and companies related to financial services and financial technology to help shape the growing cryptocurrency industry.

Further, the assembly will analyze any current crypto regulations and submit a report within a year on how current legal actions affect the markets and the country’s competitive position in the blockchain industry. The assortment of professionals will also provide recommendations to improve the “fairness, orderliness, integrity, efficiency, transparency, availability and efficacy,” of the cryptocurrency markets.

U.S. Securities and Exchange Commission (SEC) Commissioner Hester Peirce, who has been nicknamed crypto mom, recently voiced concern for a need for clarity on regulations. Pierce told Reuters that SEC guidance is needed as large corporations such as Tesla and BNY Mellon have now entered into the digital asset market.

“[The participation of corporate actors] adds to the urgency of us taking some sort of action in this area to provide more clarity,” Pierce said. Adding, “It’s not only that there have been calls for clarity for some time and that a new administration brings the chance to take a fresh look, but it also is a moment where it seems others in the marketplace are also taking a fresh look.”

Bitcoin is currently trading at [FIAT: $57,224.99] DOWN -5.0% in the last 24 hours, according to Coingecko at the time of this report.