According to Rep. Gosar, the bill “will make it easier for businesses, institutions, and everyday Americans to participate in the growing industry. No more murkiness, uncertainty, or confusion.”
The bill aims to clarify the specific federal agencies that will participate in the regulation of digital assets and requires agencies to inform the public of its grant of federal licenses, certificates, and registrations.
It also mandates that entities creating or trading digital assets seek government approval first.
In regulating cryptocurrencies, they differentiated “crypto-commodity,” “crypto-currency,” and “crypto-security.” These digital assets fall within different regulatory ambits as well.
The bill sets out rules for cryptocurrencies requiring them to allow FinCEN to trace cryptocurrency transactions, including stablecoins, and the individuals involved in the corresponding transactions.
This effectively places cryptocurrencies at the same regulatory treatment accorded to traditional financial institutions.
Additionally, FinCEN is also empowered by the bill to conduct audits for each reserve-backed stablecoin as a means to ensure that each of them is fully backed by currencies issued by the local or foreign governments they represent.
A joint statement they released back in October 2019 aims to “remind persons engaged in activities involving digital assets of their anti-money laundering and countering the financing of terrorism (AML/CFT) obligations under the Bank Secrecy Act (BSA).”
The bill is not without support from the Bitcoin community as well.
BTC millionaire Erik Finman also played a part in the drafting of the bill. It was an important aspect of the bill according to Ben Goldey, Gosar’s communication director.
In a statement that Goldey gave, he said that “since this is such a niche issue, we worked with stakeholders and outside groups/experts to get a good sense of the kind of clarity that the industry needed. We chose to gather stakeholder support before working toward cosponsors.”
As many would recall, the bill was not the first draft to be revealed to the public. The bill that was brought to the fore by Rep. Gosar was its updated version.
What the first draft missed that the latest bill now has, are the increasingly popular blockchain models such as “decentralized cryptographic ledgers” and “smart contracts.” This can potentially help in easing the acceptance of US legislators of the emerging initiatives on decentralized finance.
The future of cryptocurrencies in the US appears bright. And for blockchain enthusiasts and developers, the prospect of legislative approval and recognition through the bill can only be good news.
If the bill gets passed into law, there is no doubt that we will witness increased adoption and continuous innovation in the blockchain industry in the months and years to come.
It is not just the value of bitcoin that has climbed in the last couple…