A Tennessee congressman has introduced a bill to provide clarity on how digital assets are classified by the U.S. Securities and Exchange Commission (SEC).
U.S. Senator Bill Hagerty introduced the Digital Clarity Bill, which aims to protect cryptocurrency exchanges from SEC abuse and provide regulatory clarity on how virtual assets should be classified.
Hagerty argues that regulatory uncertainty makes it difficult to attract investment in the crypto industry and create jobs for crypto companies operating in the US. According to him, the lack of clear legislation hinders the growth of the industry:
“The lack of clarity in digital asset regulation leaves entrepreneurs and businesses with a choice: deal with regulatory uncertainty in the US or enter overseas markets with clear rules for digital assets. Unfortunately, this uncertainty threatens US leadership in this industry at such a critical time. This bill is an important step towards providing digital asset providers with the necessary reassurance and removing barriers to entry that currently hinder the growth and liquidity of the U.S. cryptocurrency markets.”
Hagerty did not mention what SEC enforcement action would be covered by the crypto exchange protection bill. This year, the senator has already introduced the Stablecoin Transparency Bill, which clarifies which digital assets qualify as stablecoins and how they must be backed.
According to the bill, stablecoins must be backed by US dollars or government securities with a maturity of less than 12 months. This will require issuers of dollar-pegged digital assets to disclose their holdings in audited reports.
SEC Chairman Gary Gensler recently warned the Ethereum community that ETH staking after the network merger could be subject to securities laws.
Source: Bits

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