While many laud the U.S. for its propensity for innovation, it is a common sentiment amongst the crypto community that America has a horrible track record for regulatory clarity.
Case in point: Ohio Congressman Warren Davidson late last year called for a better framework for cryptocurrency and blockchain:
Already, blockchain companies are moving overseas, where countries such as Switzerland have the regulatory framework to support innovation while protecting consumers. We need to do everything we can to keep these groundbreaking projects in the U.S. by establishing a clear regulatory framework that protects American innovators, investors and consumers.
Furthermore, both Andrew Yang and Mike Bloomberg made sure to mention regulatory clarity in the cryptocurrency space as a potential policy during their now-defunct presidential candidacies.
Fortunately, clarity is finally happening.
Meet the Crypto-Currency Act of 2020
Despite the brutal crash that has transpired in the price of Bitcoin over the past three days, innovation in cryptocurrency has not been fazed.
Case in point: Monday saw Representative Paul Gosar, of Arizona’s fourth district, unveil the “Crypto-Currency Act of 2020.”
Thank you all for the kind wishes! I’m feeling great today and my staff & I remain asymptomatic.
We may be quarantined, but our work continues! In fact, I just introduced the Crypto-Currency Act of 2020, a bill that my team has worked hard on over the past several months. pic.twitter.com/jaD9CakYqq
— Rep. Paul Gosar, DDS (@RepGosar) March 9, 2020
The premise of the bill should be music to the ears of innovators in the space:
By providing much-needed regulatory clarity about cryptocurrency, we will make it easier for businesses, institutions, and everyday Americans to participate in this growing industry. No more murkiness, uncertainty, or confusion.
Echoing the line of Congressman Davidson, Gosar explained that this bill is absolutely necessary for America’s primacy in innovation, before adding that there’s no way America should be sitting on the sidelines when it comes to cryptocurrency, for digital assets offer “a way for forgotten and oppressed people to participate in the global economy.”
Now, what are the details?
According to a draft of the Act circulated by CoinTelegraph, the proposal will divide cryptocurrencies into three categories, separating crypto-currencies from digital assets deemed commodities and securities: crypto-currencies would be regulated by the Treasury, crypto-commodities would be regulated by the CFTC, and crypto-securities would be regulated by the SEC.
Not many more details were mentioned, though, again, there is a drastic need for regulatory clarity, as many innovators continue to struggle to determine what is a security and what isn’t in the cryptocurrency space.
It currently isn’t clear how much support the bill has, but it seems there is a growing demand for friendly crypto regulation, even amongst regulators themselves.
Not First Recent Pro-Crypto Regulation
Gosar’s attempt to more fairly regulate the industry comes as other politicians in the U.S. have made strides in trying to make institutional America more friendly towards cryptocurrency.
U.S. House Representatives DelBene, Schweikert, Soto, and Emmer have continued to promote the Virtual Currency Tax Fairness Act of 2020.
The act, should it become law, would solve a primary issue in spending cryptocurrency for day-to-day transactions, ensuring that small crypto transactions (like spending Bitcoin for a cup of coffee or a sandwich) would be exempt from capital gains.
And in the Senate, five Senators in January introduced a bill that will make it legal for Hawaiian banks to store digital assets, which is a class that includes “virtual currencies,” “digital securities,” and “open blockchain tokens.”