A new crypto regulation draft bill has been introduced in the US House of Representatives on Friday. This Republican-led bill offers the hope to trade digital securities, commodities, and stablecoins on a single platform, media reports said.
Regarding distinguishing between commodities and securities, the draft bill states that controlled crypto firms can argue that their investments are commodities. However, they must provide detailed explanations of how these assets function and demonstrate their decentralization by certifying that no individual holds above 20% of the assets.
An SEC-registered cryptocurrency exchange, operating as an alternate trading system (ATS), may facilitate trading of stablecoins and commodities. These platforms would handle all transactions for crypto investors in one area, provided they register with the (CFTC) U.S. Commodity Futures Trading Commission.
As per the bill proposal, the CFTC would create a fresh classification for registered businesses known as a “digital commodity exchange,” specifically designed for trading certified crypto commodities. These exchanges would need to concede with standard protections, including the segregation of customer assets, and assure they are resistant to market manipulation.
While SEC Chair Gary Gensler believes that current securities regulations are adequate, this legislation would compel him to modernize regulations specifically for crypto oversight.
However, the bill, a result of negotiations between Rep. Patrick McHenry (R-N.C.) and Rep. Glenn “GT” Thompson (R-Pa.), the chairs of the financial panel and agriculture committee, respectively, does not represent the input of their Democratic peers. It serves as a “discussion draft” intended to initiate conversation and encourages Democrats to propose their own version to find common ground.
This bill now becomes part of a broader negotiation involving House Democrats, the Senate, and the House Financial Services Committee’s stablecoin bills.
