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These Blockchain Bills May Soon Inform Laws for the Cryptocurrency Industry

Congressional bills can create nationwide standards for industry regulation. Here we discuss some blockchain bills in the U.S. Congress that could pave the way for a nationwide framework.

Gemini-These Blockchain Bills May Soon Inform Laws for the Cryptocurrency Industry

Summary

Congressional bills can create nationwide standards for industry regulation. In the cryptocurrency industry, numerous state legislatures have passed their own bills that only apply statewide. Here we discuss some blockchain bills in the U.S. Congress that could pave the way for a nationwide framework.

Contents

A bipartisan group of lawmakers have formed the Congressional Blockchain Caucus to thoughtfully consider blockchain technology and propose solutions that work for both entrepreneurs and regulators.

These are some notable blockchain bills that have been introduced in the U.S. House of Representatives and are currently being considered by lawmakers:

Crypto-Currency Act of 2020

Rep. Paul Gosar (R-Ariz.) introduced the Crypto-Currency Act of 2020. Key areas include:

  • Legal Definitions: Would define terms such as Cryptocurrency, Crypto Commodity, Decentralized Oracle, Digital Asset, Smart Contract, and Stablecoins

  • Regulatory Jurisdictions: Would separate the oversight jurisdiction of the Securities and Exchange Commission (SEC), Financial Crimes Enforcement Network (FinCEN), and the Commodity Futures Trading Commission (CFTC)

  • Exchange Registration: Would require all cryptocurrency exchanges to register with the SEC, FinCEN, and the CFTC

  • Stablecoins: Would initiate rules governing the tracking, auditing, and user notifications for stablecoins, especially fiat-backed stablecoins

This act could provide additional clarity for the industry, should it be codified into law. 

Token Taxonomy Act of 2019

Co-authored by the bipartisan team of Rep. Warren Davidson (R-Ohio) and Rep. Darren Soto (D-Fla.), this bill focuses on the tax treatment of spending cryptocurrency. Currently, when you buy goods or services with cryptocurrency you may owe tax on capital gains or losses based on the difference between the current price and the price at which you bought or obtained the cryptocurrency.

Securities Clarity Act

Drafted by Rep. Tom Emmer (R-Minn.), this bill incorporates a piece of the Crypto-Currency Act of 2020 into its own bill focusing on the regulations for launching a cryptocurrency network. This blockchain bill seeks to amend the Securities Act of 1933 to apply to cryptocurrency.

The ‘33 Act requires investments to be registered under strict securities regulations. The Securities Clarity Act would create an “investment contract asset” to separate decentralized assets from the investment vehicle.

Blockchain Records and Transactions Act of 2020 

In 2000, the Electronic Signatures in Global and National Commerce Act (E-Sign Act) certified the validity of electronic signatures. This bill, another bipartisan effort introduced by Rep. David Schweikert (R-Ariz.) and Rep. Soto (D-Fla.), seeks to expand the reach of the E-Sign Act to  encompass records, signatures, and smart contracts that use blockchain technology. 

If passed, the new bill could facilitate further innovation in real estate, the legal field, and other industries where commercial agreements are relied upon.

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