U.S. Senator’s Bill Aims to Buffer Crypto Trading Amid SEC Enforcement Actions

U.S. Senator Bill Hagerty, a member of the Senate Banking Committee, introduced legislation aimed at providing a safe harbor for cryptocurrency exchanges through “certain” Securities and Exchange Commission (SEC) enforcement actions.

Digital Transaction Clarity Act 2022, introduced Written by Sen. Hagerty to provide regulatory clarity on two major issues plaguing cryptocurrency trading institutions – (i) the classification of digital assets and (ii) related liabilities under existing securities laws.

A bill designed to provide digital asset intermediaries with a safe harbor from certain SEC enforcement actions, among other purposes. Source: congress.gov

Senator Hagerty outlined the problems in regulatory hurdles:

“The current lack of clarity on digital asset regulation presents entrepreneurs and businesses with a choice: navigate the severe regulatory ambiguity in the U.S., or move to overseas markets with clear digital asset regulation.”

According to Senator Haggerty, the aforementioned regulatory uncertainty has hindered investment in the crypto space and hindered job creation in the United States. As a result, the blockade “jeopardizes U.S. leadership in this transformative technology at such a critical time.”

The senator believes that the legislation, if passed, will not only provide “much-needed certainty” for crypto businesses, but will also improve the growth and liquidity of the U.S. cryptocurrency market.

For legislation to become law, the bill needs to be approved by the Senate, House of Representatives and the President of the United States.

related: U.S. lawmakers propose changes to cybersecurity bill to include encryption companies reporting potential threats

Parallel to regulatory reforms proposed by U.S. senators, the federal government has stepped up efforts to study the viability of central bank digital currencies (CBDCs) in the U.S. market.

at Biden’s directionOffice of Science and Technology Policy (OSTP) 18 CBDC design choices analyzed — Outline the various advantages and disadvantages of each system:

“Over time, the technology that supports permissionless methods may improve significantly, which may make it more suitable for use in CBDC systems.”

A technical assessment of the U.S. CBDC system underscores the department’s propensity for off-the-books, hardware-protected systems.