US lawmakers have just unveiled the new draft bill that aims to bring regulatory clarity to the crypto markets.
The proposed “Digital Asset Market Structure Draft” introduced by the House Committee on Financial Services and House Committee on Agriculture seeks to create a legal framework that will work for all stakeholders amid existing regulatory shortcomings.
“This functional framework would provide regulatory certainty to digital asset firms and close the gap that exists between the Commodity Futures Trading Commission (CFTC) and Securities and Exchange Commission (SEC) authorities.”
The bill also clarifies the authority of the Commodity Futures Trading Commission (CFTC) and the US Securities and Exchange Commission (SEC) over digital assets, as the two agencies tend to clash over the issue of regulating the nascent industry.
“The Digital Asset Market Structure Discussion Draft (Discussion Draft) gives the CFTC jurisdiction over digital commodities and clarifies the SEC’s jurisdiction over digital assets offered as part of an investment contract.”
The draft law also aims to clarify whether a particular crypto asset is a security or a commodity. According to the document, a crypto asset can be considered a digital commodity if the issuer can prove that the project is functional and decentralized.
“The law stipulates that a digital asset can be considered a digital commodity if certain conditions are met. This would be determined by the fact that the network is functional and considered decentralized.
The law contains definitions for a decentralized network and a functional network and provides a certification process whereby a digital asset issuer can certify to the SEC that the network to which the digital asset relates is decentralized.
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