Draft legislation has been drafted and then proposed by a US Senator aiming at the regulation of crypto. The law provides for equipping the US’s Securities & Exchange Commission (SEC) as well as the Commodity Futures Trading Commission (CFTC) with the powers and control over virtual assets.
Don Beyer, a US lawmaker, was working on draft legislation that he wanted to put before the Senate for consideration. The law, which was self-drafted by Beyer last week, was regarding the regulation of virtual assets in the US. As per Beyer’s version of crypto regulation, he wants to induct virtual assets into the US’s financial system. He believes that virtual can be made part of the system which is usually regulated, supervised, and controlled by the existing US’s regulators.
This aspect of the proposed law was apprised by Beyer on his personal webpage where he commented that blockchain and crypto have huge potential. He then acknowledged that virtual assets like that of Bitcoin and Ethereum are going to stay without any exception. However, he admitted that the current regulatory environment does not cater to technologies like blockchain and virtual assets. He stated that the existing conditions are bad for crypto as well as for crypto consumers and investors. He advised that the ambiguity needs to be cleared and crystal-clear crypto regulation is required as soon as possible.
Beyer duly acknowledged further that the owners of virtual assets have been victimized by crypto criminals. Their funds have been stolen directly from their accounts or through fraudulent means and that they are living under continuous fears. However, Congress has failed to bring about any positive change by giving the crypto industry a comprehensive and efficient legal/regulatory framework.
He is of the view that the proposed legislation would be enough to subsequently provide for legal as well as the regulatory framework. Beyer has proposed that the supervisory and regulatory control of the crypto should be handed over to the SEC and CFTC. He informed that the legislature he has drafted has exclusively defined the roles of both of the regulators individually. He believes that by handing over regulatory powers to CFTC and SEC, legal certainty can be introduced with the US’s crypto market.
Another very specific provision of the proposed legislation, according to Beyer, is the data collection of crypto transactions. Beyer suggested that the crypto transactions which are not entered into public distributed ledgers should be recorded with Digital Asset Trade Repository (DATR).
Beyer’s crypto Bill also talks about the US’s CBDC. With regard to the CBDC, Beyer proposes that the exclusive authority over Digital Dollar would be of Treasury Secretary.
However, whether the Bill will be considered or not is a matter of time. Yet, while issuing its annual agenda, SEC did not offer any proposal for regulating crypto in the near future. Not even the US Government is for the time being planning to set up a crypto regulatory structure on a priority basis.