Pending digital asset legislation is piling up in the US House and Senate with some of these bills poised to move forward following the outcomes of the midterm elections.
Last week, Senator Bill Hagerty, a member of the Senate Banking Committee, introduced the Digital Trading Clarity Act of 2022 (S.5030).
The Act aims to provide digital asset exchanges with a safe harbor from some SEC enforcement actions that will clarify certain characteristics of digital assets – all without “sacrificing consumer protection.”
Senator Hagerty commented on the Act;
“The current lack of regulatory clarity for digital assets presents entrepreneurs and businesses with a choice: navigate the significant regulatory ambiguity in the U.S., or move overseas to markets with clear digital asset regulations. Sadly, this uncertainty discourages investment and job creation here in America and jeopardizes the United States’ leadership in this transformational technology at such a crucial time. This legislation is an important step toward providing digital asset intermediaries with much-needed certainty and removing the barriers to entry currently impeding the growth and liquidity of U.S. cryptocurrency markets.”
The text of the bill has not yet been posted but should emerge within the coming days.
As was reported yesterday, the Financial Stability Oversight Council (FSOC) published its Report on Digital Asset Financial Stability Risks and Regulation. The report recognizes a need for regulatory clarity in regard to digital assets. SEC Chairman Gary Gensler has consistently stated that he believes all digital assets are securities with the exception of Bitcoin and perhaps several others. If all digital assets are securities they will be regulated under existing securities law – minus new legislation that is signed into law. Gensler also said he believes that intermediaries (read crypto exchanges et. al.) must register with the Commission.
If the Republicans take the House and/or the Senate in the midterms, the digital asset industry may benefit from a more crypto-friendly group of policymakers.