Recent efforts by Democrats in the US Congress are focused on establishing a clear regulatory framework for the cryptocurrency market. The proposed bill could significantly alter the landscape of cryptocurrency in the country.
Structure of the New Bill
Twelve Democrats in Congress presented a seven-article bill concerning the regulatory structure of the cryptocurrency market. The initiative was spearheaded by Senators Ruben Gallego, Mark Warner, Kirsten Gillibrand, and Cory Booker, highlighting that the nearly $4 trillion cryptocurrency market requires robust regulation.
Key Points of the Bill
Key provisions of the bill include:
1. Regulation of the cryptocurrency spot market to be managed by the CFTC. 2. A need for clarity in laws regarding tokens and cryptocurrencies with a focus on transparency. 3. Digital asset platforms serving US users must register with FinCEN as financial institutions. 4. Clarification needed on which assets are securities and which are commodities. 5. Establishing a dedicated regulatory framework for DeFi to prevent unlawful use. 6. Prohibiting elected officials and their families from issuing, monetizing, or supporting any cryptocurrency while in office. 7. Increased funding for financial regulators such as the SEC and CFTC.
Reactions to the Bill
The proposed bill has sparked various reactions, including concerns about potential impacts on cryptocurrency initiatives related to Trump and inadequate investor protection. This initiative from Democrats underscores their readiness to work on comprehensive cryptocurrency reform, which could lead to significant changes in the market.
Uncertainty in cryptocurrency regulation has become a topic of discussion in the US. The new Democratic bill may influence market development by providing greater investor protection and clarity in rules.
