Multiple reports regarding the regulation of cryptocurrencies in the United States have surfaced over the past weeks, with two major crypto bills introduced recently on September 24 in the U.S. House of Representatives.
One bill looks to allow the nation’s commodities regulator to govern crypto exchanges, while the other one is set to define which of the crypto assets are securities.
Emmer’s Securities Bill
The first bill dubbed the ‘Securities Clarity Act’ comes from the office of Representative Tom Emmer (R-MN). The bill aims to establish a distinction in securities law between an investment contract and the “an asset sold pursuant to an investment 22 contract whether tangible or intangible (including an 23 asset in digital form).”
The new bill comes as in response to the controversies arising over the ‘Simple Agreement for Future Tokens’ framework or SAFT, conceptualized by lawyers in the industry.
Cryptocurrencies like EOS and Telegram’s TON were distributed under the SAFT framework and has resulted in several controversies. Messaging app Kik even found itself amidst regulatory trouble for using SAFT in an ICO.
However, if the act is passed, the Securities and Exchange Commission (SEC) would be restricted from pursuing digital assets based on the initial contracts under which they were sold.
Conaway’s Commodities Bill
The second bill is called the ‘Digital Commodity Exchange Act’ introduced by Representative Mike Conaway (R-TX) with support from the members of the Blockchain Caucus, a group of Members of Congress and staff who believe in the future of blockchain technology, to the House Agriculture Committee.
Conaway holds a critical position on the Agricultural Committee and his bill would put crypto exchanges under the governance of the CFTC, which in turn is overlooked by the Agriculture Committee.
The new bill would also put retail cryptocurrencies within the same regulatory framework as commodities exchanges, but it is necessary to leave space for the SEC for sales involving “a securities offering or transaction associated with a digital commodity presale.”
U.S. addressing crypto
The new bill comes just a week after the U.S. Financial Crimes Enforcement Network (FinCEN) announced its plans to change its anti-money laundering (AML) and counter-terrorist financing (CTF) laws to modernize and strengthen it to establish a stricter oversight on the crypto industry.
Regulators also introduced a new money transmitter license that is expected to save large firms from having to get separate licenses in every state by putting it all under a single set of parameters for state licensing that implements a single exam conducted by examiners across the nation.