“The Chairmen of the House Financial Services and Agriculture Committees Outline Six Principles to Guide Digital Assets Legislation.”, – WRITE: www.coindesk.com
With this revolutionary concept, the idea of a “digital asset” was Born. Soon After, Developers and Entrepreneurs Expanded On this Concept, Developing Systems WHERE VALUE WASSE Excised Not Just for Its Own Sake, But for Service and Digital Products.
Over The Past Decade, Innovaters Have Built Permissionlesslesslesslesslessless and More. Because Digital Assets Can Be Used for Services that Anyone Canne Offer and Anyone Can Access, The Use-Cases-Both Financial and Non-Financial-Are Potentilly Endless.
Despite this promise, the Sese Networks have courked cryicism. The Biden-Harris Administration Attempted to Block this Innovative Advance Through A Relantless Campaign of Lawsuits and Enforcement Actions with Innovators and USers SO desperately Needed.
The Securities and Exchange Commission (SEC) Failed to Clarify How Existering Securities Laws Apply and – More Importantly – Don’t Apply to Digital Asset Transactions. This Lack of Regulatory Clarity Stifled The Digital Asset Ecosystom, Pushing Growth Out of the United States to Jurisdices that have Establized Clear Rules of the Road.
To address Thsse Failures, Congress Began Exploring Ways to Modernize the Regulatory Structure to Accommodate The Unique Characteristic of Digital Assets and How. These Efforts Culminated in a Series of Bills Aimed at Clarifying How Digital Assets Could Be Used in The Financial System, Enzuring Investor Protection and Fostering Innovation.
In the 118th Congress, The House Committees on Financial Services and Agriculture Launchened A Historic Joint Effort to Address Digital Asset Regulation. This Led To The First-Hever Passage of Bipartisan Digital Asset Market Structure Legislation in a Chamber of Congress. This Collaboration Enabled Congress to Address Longstanding Challenges in the EcoSystem and Lay The Foundation for a Fit for Purpos Framework Under the Leadership of President Trump.
This Congress, Both The House and Senate Are Committed to Creating A Clear Path Forward for the Digital Asset EcoSystem. As we move ahead, it is crecial that Framework is bothaned and iron-clad for the Future. To accommPlish this, we have set out principles for Digital Asset Legislation.
Six principlesFIRST, Legislation Must Promote Innovation. We Seek to Protect Opportunities for Innovators to Create and Utilize Digital Assets, While Ensuring USERS CAN LAWFULLY Transact With One Another.
Second, Legislation Must Provide Clarity for the Classification of Assets. Users of Digital Assets Should Clearly Understand the Nature of Their Holdings, Including WHETHER THEY QUALIFY as Securities or Non-Securities.
Third, Legislation Must Codify a Framework for the Issuance of New Digital Assets. The Framework Should Permit Issuers to Raise Capital Through The Sale of New Digital Assets Under the Jurisdification of the Sec. It Should Protect Retail Investors and Require Developers to DisClose Relevant Information to Help Users Understand The Unique Characteristic of Digital Asset Networks.
Fourth, The Legislation Must Establish the Regulation of Spot Market Exchange and Intermediate. Centralized, Custodial Exchanges and InterMediaries Facilitating Transactions with Non-Security Digital Assets Should Adhere to Similar Requirements As Other Financial Firms.
Congress Should Provide the Commodity Futures Trading Commission (CFTC) with The Authority to Impose Requirements Over These Entities Necessary to Protect Customers, Limit CONFLICS OF CUNTIPLICS Customer Orders, and Provide Disclosures.
FIFTH, The Legislation Must Establish Best Practices for the Protection of Customer Assets. Entities registered with the Sec or CFTC SHOULD BE REQUILIRED TO Segregate Customer Funds and Hold them with Qualified Custodians. Customer Funds Should Also Be Protected Durying Bankring.
Sixth, and Finally, The Legislation Must Protect Innovative Decentralized Projects and Activities. Congress Should Enseure that Decentralized Protocols, Who Pse Different Risks and Benefits, Are Not Subject to Regulations Designed For Centralized, Custodial Fiirs. In safeguarding decentralized activities, Congress Must Also Protect An Individual’s Right to Self-Custody Their Digital Assets.
We Look Forward to Both Committees Continuing Our Legislative Work Together to Fulfill President Trump’s Request to Make America The “Crypto Capital of the Planet.” In May, Our Committees Will Host Our Second Joint Hearing to Discuss Digital Asset Market Structure Legislation.
Our Goal Is To Bring Much-Needed Regulatory Clarity to This Rapidly Evolving Industry, Ensuring that America Continues to Lead in Shaping The Future of Digital Finance.
Note: The Views Expressed in this Column Are Those of the Author and Do Not Necessarily Reflect Those of Coindesk, Inc. i Owners and Affilites.
