The United States is expected to record massive improvement in Cryptocurrency regulation if Congress passes two bills on the technology. The proposed bills would enable regulators to oversee virtual currencies thereby protecting investors. The market received the news warmly claiming the proposed regulation will help to move the industry forward.
Bipartisan Support For Two Crypto-Related Bills
Reps. Darren Soto, D-Fla., Warren Davidson, R-Ohio, and Ted Budd, R-N.C. are working on two bills that will help in improving Cryptocurrency regulation in the United States. The first bill will allow the Senate Banking and House Finance Services and other committees to know more about the regulation of the virtual currencies in America and beyond from Securities and Exchange Commission, Commodity Futures Trading Commission, and other agencies. Furthermore, the committees will get information on the benefits of both the altcoins and blockchain technology as this bill directs the agencies to do so.
Soto’s regulation will also help in categorizing Cryptocurrencies for easy regulation. The bill will clarify which digital assets should be treated as commodities. Furthermore, the proposal also provides an alternative regulatory structure for Cryptocurrency spot markets, which include market supervision, federal licensing etc.
The Commodity Futures Trading Commission will have even more responsibilities if the house passes the second bill. Under the proposal, the agency will be required to establish how Cryptocurrencies are manipulated. Furthermore, the agency will be expected to identify the coins that are more susceptible to these practices.
The US And Europe To Share Same Approach In Cryptocurrency Regulation
The Virtual Commodity Association, a group in the United States, has been pushing for the establishment of an industry-sponsored regulator who will only deal with Cryptocurrencies. If the proposal by the group sails through, the Crypto market will function almost in a similar way as the stock market where the industry partly policies itself. This will make it easy for the regulators to supervise the market effectively.
The two bills, if passed, will also make the American Crypto market to resemble the European in a way. Two leading financial regulators in the EU have proposed the creation of a separate agency for the Cryptocurrencies since they are not well regulated. Despite the many benefits associated with Cryptocurrencies, the European Banking Authority and the European Securities Markets Authority are more concerned about the pitfalls of this technology.
Regulation Good For The Crypto Sector
In a statement, Soto noted that Cryptocurrencies and blockchain technology could enhance economic growth. He expressed the need for the United States to take a leading role in protecting consumers and investors in the sector. The legislator also stressed the need to create an environment that will also enhance the growth of the sector.
Gemini’s Yusuf Hussain is one of the people who welcomed the proposed regulation. The head of risk at the virtual currency company opines that the two bills will foster research and education on Cryptocurrencies. He observed that proposed laws will enhance the growth of the Crypto sector in the country and challenge other countries to follow suit. The Crypto community in the United States is happy that the parliamentarians are now proposing Crypto-friendly regulations.