Republican lawmakers Friday provided a clearer regulatory plan for crypto assets and exchanges, allowing digital assets to be traded on more traditional trading platforms, as well as introducing a division of power between the top two US financial regulators. announced a draft bill to
The discussion draft, co-authored by Rep. Patrick McHenry (R-Pennsylvania) and Glenn Thompson (R-Pennsylvania), is a resolution to the Commodity Futures Trading Commission against virtual currency products under current law. It gives explicit spot market authority.
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The Securities and Exchange Commission will regulate digital asset securities.
The bill would “prohibit” the SEC from blocking the listing of cryptocurrencies through alternative trading systems (ATSs), according to sources, and tell the SEC to “amend rules to allow broker-dealers to store digital assets.” It is said that it is something that demands. draft summary.
The bill proposes a clearer pathway for registered offers and sales of digital assets. The SEC has taken several enforcement actions against U.S. cryptocurrency entities, including Gemini, Genesis, and Kraken, alleging that they were involved in the offering and sale of unregistered securities.
Major carve-outs of so-called DeFi assets, or decentralized financial assets, will exempt SEC-certified assets from registration as securities.
Cryptocurrency exchanges are calling for regulatory clarity as companies and developers scramble to move their operations beyond U.S. cryptocurrency exchanges following massive law enforcement action. there is coin base and Gemini both announced the operation of offshore exchanges.
Coinbase is also battling it out in court with the SEC over the very issue that apparently inspired the McHenry-Thompson bill. The cryptocurrency exchange received a Wells Notice from the SEC earlier this year warning of impending enforcement action.
The bill is likely to be reconstituted and amended in the coming weeks and months, but it represents strong support from two influential Republican lawmakers.