Establishing New Market Structure Rules Around Digital Assets: An Overview of the US House and Senate Bill

04/21/2023 00:36 • NFT Newsflash • 136 views

On April 21st, it was announced that the US House of Representatives and Senate have jointly formulated a bill to establish new market structure rules around digital assets. This bill is in sync with another regulatory measure aimed at promoting a bipartisan framework for stabilizing the currency.

The US House of Representatives and Senate have begun to jointly formulate new market structure rules around digital assets

The rise of digital assets, including cryptocurrencies, has been causing policy makers around the globe to reevaluate their regulatory frameworks. On April 21st, 2021, the US House of Representatives and Senate jointly announced a bill aimed at establishing new market structure rules around digital assets. This bill is in addition to another regulatory measure aimed at promoting a bipartisan framework for stabilizing the currency. In this article, we will discuss the key provisions of the proposed bill and its potential impact on the digital asset market.

Overview of the Proposed Bill

The proposed bill, titled ‘Eliminate Barriers to Innovation Act of 2021’, aims to modify the Securities Act of 1933 and the Securities Exchange Act of 1934 to better accommodate the digital asset market. The bill has been introduced by Warren Davidson, a member of the House Financial Services Committee, and will be considered by the Committee before it is presented to the House of Representatives for voting.
The bill seeks to clarify the regulatory framework surrounding digital assets and eliminate ambiguities that exist under the current laws. It proposes adding a definition of digital assets to the Securities Act of 1933 and proposes amending the definition of securities under the Securities Exchange Act of 1934 to exclude some digital assets. The bill would also establish a regulatory structure for digital assets with a market capitalization of over $10 billion.

Potential Impact of the Bill

The proposed bill has been welcomed by various entities in the digital asset market, including exchanges, investors, and industry organizations. The clarity provided by the proposed amendments would alleviate the current regulatory uncertainty around digital assets and encourage more institutional investment in the sector.
The regulatory structure proposed by the bill seeks to protect investors and promote financial stability, but some critics have raised concerns over the potential impact of such regulations on innovation. According to Warren Davidson, the proposed bill would create a level playing field that would enable innovation without compromising investor protection.

Conclusion

The US House and Senate bill to establish new market structure rules around digital assets is a significant development in the regulatory framework for digital assets. The proposed measures seek to eliminate ambiguities and provide clarity for market participants looking to enter the digital asset market. While the bill is yet to be passed, it is an important step towards creating a regulated environment that encourages innovation while ensuring investor protection.

FAQs

Q. What is the primary aim of the US House and Senate bill on digital assets?
A. The bill aims to establish a regulatory framework that accommodates the digital asset market and eliminates ambiguities in the regulatory framework.
Q. Who introduced the proposed bill?
A. Warren Davidson, a member of the House Financial Services Committee, introduced the proposed bill.
Q. What is the potential impact of the proposed bill on the digital asset market?
A. The proposed bill would provide clarity for market participants and encourage more institutional investment in the sector. However, critics have raised concerns over the potential impact of such regulations on innovation.

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