The U.S. Senate Banking Committee has released a set of principles for regulating the crypto market. These principles could reshape the trajectory of the crypto industry in the country.
What Are the “Principles for Crypto Market Structure”?
The new document, titled “Principles for Crypto Market Structure,” was released by the Senate Banking Committee in collaboration with four Republican senators. This is not legislation but serves as a guiding framework for future crypto regulation. The document outlines six key pillars concerning the legal classification of digital assets, regulatory authority boundaries, and modernization of the regulatory framework.
The Strategy Behind the Principles
These principles call for a clear definition of the legal status of digital assets, potentially leading to greater clarity for market participants. It notes that not all DLT-based platforms should be treated under the same rules, emphasizing the protection of user rights to self-custody. The principles also propose new exemptions for public fundraising with digital assets to simplify the process for projects.
Key Highlights and Future Outlook
The new regulation does not imply total deregulation but stresses the need to comply with anti-money laundering laws. Other important aspects include the protection of customer assets and distinct regulations for centralized and decentralized platforms. Overall, this suggests an intention to create a structured approach to the crypto market.
The release of the Crypto Market Structure Principles could be a significant step toward establishing a clear regulatory framework for digital assets in the U.S., fostering greater confidence among market participants and attracting new innovations.
