Dan Beyer is the Democratic Party representative in the States House hailing from the State of Virginia. He presented a crypto regulation bill in congress. The bill addressed all the loopholes and legal relief that the cryptocurrency enterprises have been cashing on to date. The main objective of the bill is to procure a legal definition of a cryptocurrency.
If the Bill is approved, it will put the virtual asset market under the purview of Commodities and Futures Trading as well as the Securities and Exchange Commission of the United States. The legal boundaries of the said bill cover 90% of the current crypto market variants. Congressman Beyer is calling for the federal institutions to join hands for formally deploying regulations in the crypto space.
The bill presented by congressman Beyer calls to implement Bank Secrecy Act and classify all altcoins as monetary instruments. This step will ensure the streamlined classification of all investor’s data and ensure transparency as well as security. Congressman added in his presentation speech that countless investors were scammed and duped by threat actors and posers.
Therefore, he postulated the commencement of the CFTC digital asset repository legislation. Any type of crypto tokens that are not registered on the public distributed ledger within a day, CFTC could take legal action against the defaulters. The bill further explained that both on-chain and off-chain entertained by a third party platform is liable to use verification method to comply with the centralized record requirements.
Bill Proposes to Authorize the US Treasury Secretary to Decide the Fate of Stablecoins
The bill titled “Digital Asset Market Structure and Investor Protection Act 2021” also discusses the matter of Central Bank Digital Currencies (CBDCs) and the stablecoins market. The bill posits to grant full support to the Federal Reserve for working on the digital dollar project. The bill also emphasizes granting FR full control of the digital dollar project solely.
Meanwhile, this bill also calls for awarding comprehensive authority to the current US Treasury Secretary over stablecoins. The elected personal would have the power to approve or disprove any stablecoin at their discretion. Furthermore, the Federal institutions like NCUA, SIPC, and FDIC are decreed to formulate non-coverage specifications for altcoins to educate the investors that their virtual holdings are not covered by insurance like bank deposits or securities.