Representative Don Beyer of Virginia has recently submitted a bill that seeks to create a regulatory framework for digital assets. The “Digital Asset Market Structure and Investor Protection Act” aims to provide a framework that protects consumers and promotes innovation.
He explained that technological improvements in the crypto-space are creating new jobs, products, and services and hence should have a regulatory system in place to drive growth. He added that this sector offers great potential and assets like Bitcoin and Ethereum are here to stay.
Talking about the significance of the bill, Beyer said:
“Digital asset holders have been subjected to rampant fraud, theft, and market manipulation for years, yet Congress has hitherto ignored the entreaties of industry experts and federal regulators to create a comprehensive legal framework.
Our laws are behind the times, and my bill would start the long-overdue process of updating them to give digital asset holders and investors basic protections.”
Beyer’s bill is unique in the sense that it would require the SEC and CFTC to provide legal clarity for the top 90% of the crypto market via joint rulemaking. The bill will characterize the treatment of crypto assets under five securities acts including the Bank Secrecy Act and the Commodity Exchange Act.
Regulations on stablecoins
The bill has mentioned several regulations on stablecoins as well. It clarified that since stablecoins backed by the US Dollar are not the legal tender, the act will authorize the US Treasury Secretary to approve and ban stablecoins. Those stablecoins already in circulation will have to apply for approval.
“Within 90 days of the enforcement of the content of this section of the bill, the Secretary of the Treasury shall establish an application process to approve or disapprove the issuance of stablecoin denominated in legal tender.”
If approved, the act will give the Federal Board Reserve the authority to issue a digital version of the US dollars (CBDC).
Several bills on the regulation of digital assets have been submitted, however, none have been approved as of yet.