United States Senator Bill Hagerty, a member of the Senate Banking Committee, has introduced a bill seeking a safe harbor for cryptocurrency exchanges. regarding “certain” enforcement actions of the Securities and Exchange Commission (SEC).
The Digital Commerce Clarity Act of 2022, introduced by Senator Hagerty, aims to provide regulatory clarity around two main concerns plaguing cryptocurrency exchanges: (i) classification of digital assets and (ii) related responsibilities under existing securities laws.
Senator Hagerty outlined an overview of the issues amid the regulatory hurdles:
“The current lack of regulatory clarity for digital assets presents entrepreneurs and businesses with a choice: navigate significant regulatory ambiguity in the United States, or move abroad to markets with clear digital asset regulations.”
The aforementioned regulatory uncertainty, according to Senator Hagerty, discourages investments in cryptocurrency spaces and hampers job creation opportunities in the United States. As a result, the blockade “jeopardizes the leadership of the United States in this transformative technology at such a crucial moment”.
The senator believes that the bill, when passed, It will not only provide “much-needed certainty” to crypto businesses, but also enhance the growth and liquidity of the US crypto markets..
To establish the bill as law, approval of the United States Senate, House, and President is required.
Parallel to the regulatory reforms recommended by US senators, the federal government stepped up efforts to study the viability of central bank digital currencies (CBDCs) in the US market.
Under Biden’s guidance, the Office of Science and Technology Policy (OSTP) analyzed 18 CBDC design options, highlighting various pros and cons of each system:
“It is possible that the technology underpinning a permitless approach will improve significantly over time, which could make it more suitable for use in a CBDC system.”
The technical evaluation of a US CBDC system revealed the Department’s bias for a hardware-protected, off-ledger system.
Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information set forth herein should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
Keep reading:
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the full amount invested may be lost. The services or products offered are not aimed at or accessible to investors in Spain.