The US Senate has announced a set of principles for developing market structure legislation for digital assets, aimed at enhancing legal clarity.
Objectives of the Digital Asset Legislation
The principles laid out by Senate Banking Committee Chairman Tim Scott and fellow senators are designed to guide discussions with industry participants and experts. They underscore the necessity for clear legal definitions regarding the status of digital assets, providing legal clarity and supporting innovation.
Clear Allocation of Jurisdictions Among Regulators
The senators also emphasize the need for distinct jurisdictional boundaries among regulators like the SEC and CFTC. They believe that not all distributed ledger technologies should come under their regulation, allowing for a more flexible environment for innovation.
GENIUS Act and the Future of Digital Assets in the US
Chairman Scott expressed his eagerness to continue working on the GENIUS Act, strengthening regulatory frameworks for the crypto industry in the US. This act, passed on June 17, establishes a pathway for private firms to issue digital dollars while meeting governmental conditions.
The principles proposed by the senators may serve as a foundation for ongoing discussions and developments in digital asset regulation, potentially leading to a safer and more predictable market environment.
