Two latest crypto legislations have recently been proposed in the United States. Jack Reed, a well-known US Senator, has sponsored bipartisan legislation that would tighten the Anti-Money Laundering (AML) and Know Your Customer (KYC) requirements, sanctions, and regulations for decentralized finance.
United States Witnesses 2 Additional Legislations Proposed for Crypto Assets
The respective legislation would categorize the decentralized finance (DeFi) entities among the other financial platforms such as centralized companies for crypto trading, casinos, and pawn shops. A couple of prominent crypto-proponent groups, including the Blockchain Association and Coin Center, stood against the bill. The latter made some statements labelling the bill as an unconstitutional, unworkable, and messy method to regulate DeFi.
In addition to this, Kristin Smith (the Blockchain Association’s chief executive officer) reiterated the concerns raised by Coin Center and classified the exclusive bill as redundant. Apart from that, the executive stated that law enforcement organizations already possess expertise and instruments to confront the relatively little but significant problem.
On the other hand, the Financial Innovation and Technology for the 21st Century Act has been proposed by Republican House Financial Services and House Agriculture. The legislation increases the authority of the Commodity Futures Trading Commission (CFTC) concerning digital commodities. It also clarifies the jurisdiction of the US Securities and Exchange Commission (SEC).
Cosponsors of a Bill Criticize SEC’s Approach to Regulate the Crypto Market
Moreover, it establishes a procedure with which digital assets first considered securities are to be traded as commodities. The cosponsors of the legislation delivered a letter to Gary Gensler (the chairman of the SEC) a day before the proposal of the bill. In that letter, they criticized the approach being followed by the securities regulator. They particularly spoke against the enforcement-based regulation by the agency for the crypto market.
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