A new bill introduced by some senior House Republicans in the US Congress aims to provide a way for a digital token to transition from a security to a commodity.
This bill, which passes Congress, will provide a clear definition that a project’s tokens are too decentralized to qualify as investment contracts.
US Congress Discusses A New Bill for Cryptocurrencies
The bill was introduced as part of an effort to provide greater flexibility and direction on how digital assets should fit into existing assets. This effort aims to regulate US financial law in accordance with the unique characteristics of Blockchain-based tokens.
The initiators of the bill, House Financial Services Committee Chairman Patrick McHenry and House Agriculture Committee Chairman Glenn ‘GT’ Thompson, plan the draft to be the final stage in negotiations with House Democrats and their Senate counterparts. This bill aims to clarify existing tension points by being adopted as a new law regulating the market structure of digital assets in the USA.
However, reactions from other policymakers and the administration of President Joe Biden, and the chance of the law passing, are still uncertain. US financial regulators, led by Treasury Secretary Janet Yellen, called for new laws regarding digital assets last year. Therefore, the future progress of the bill and its chances of adoption will depend on the attitudes of policy makers and regulators.
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