a new one bill Proposed by Don Beyer, a Democrat in the U.S. House of Representatives and Virginia, proposed a comprehensive digital asset supervision and legal framework with far-reaching influence.
The bill is called the “Digital Asset Market Structure and Investor Protection Act of 2021”, and it covers almost all important gray areas where cryptocurrencies continue to exist in the US context.
One of its main goals is to establish a statutory definition for digital assets and digital asset securities, placing the former under the jurisdiction of the Commodity Futures Trading Commission (CFTC) and placing the latter under the jurisdiction of the Securities and Exchange Commission. Both the SEC and CFTC will be responsible for providing legal clarity on the regulatory status of the top 90% of crypto assets by market capitalization and trading volume.
In addition, the bill aims to formalize the regulatory requirements for all digital assets and digital asset securities in accordance with the Bank Secrecy Act, classifying the two as “monetary instruments” to enhance transparency, reporting, and anti-money laundering enforcement.
In terms of central bank digital currency, the bill aims to pave the way for the Federal Reserve to issue digital dollars by clearly designating the Federal Reserve as the only institution authorized to issue digital dollars. It is worth noting that it requires the U.S. Secretary of the Treasury to have the authority to allow or prohibit the United States, the U.S. dollar, and other stable currencies based on legal tender.
The details of the proposed investor protection measures include requiring the Federal Deposit Insurance Corporation (FDIC), the National Credit Union Administration (NCUA) and the Securities Investor Protection Corporation (SIPC) to issue clear instructions on the “non-coverage” of digital assets to make investors clear Really realize that their assets are not insured like traditional bank deposits or securities.
To prevent fraud, the bill proposes that any digital asset that is not recorded on the public distributed ledger within 24 hours should be reported to the CFTC-registered digital asset transaction repository. The text of the bill defines the latter as follows:
“The term’digital asset transaction repository’ refers to anyone who collects and maintains information or records about transactions or positions or the terms and conditions of digital asset sales contracts […] Signed by a third party (public distributed ledger transactions on the chain and off-chain transactions), with the purpose of providing centralized record keeping facilities for any digital asset. “
However, the term does not mean the private or public ledger itself or its operator, unless it or they also seek to aggregate/include off-chain transactions.
According to reports, Treasury Secretary Janet Yellen recently told financial regulators that the government needs to act quickly Establish a regulatory framework for stablecoins, Pointed out that they may bring risks to end users, and may have a broader impact on the country’s financial system and national security.