SEC Enforcement Protection Bill
US Senator Bill Hagerty, a member of the Senate Banking Committee, introduced legislation that would protect cryptocurrency exchanges from “certain” enforcement action by the Securities and Exchange Commission (SEC).
The Digital Trading Bill of 2022, introduced by Senator Hagerty, aims to provide regulatory clarity on two of the main issues facing institutions that trade cryptocurrencies: the classification of digital assets and compliance with applicable securities laws.
The purpose of the bill is to provide digital asset intermediaries with a safe haven from certain enforcement actions by the SEC.
Senator Haggerty outlined the problems associated with regulatory hurdles:
“The current lack of clarity in digital asset regulation leaves entrepreneurs and businesses with a choice: deal with significant regulatory uncertainty in the US or expand overseas into markets with clear digital asset rules.”
According to Senator Hagerty, the aforementioned regulatory uncertainty discourages investment in the cryptocurrency space and hinders job creation in the United States. Thus, the blockade “jeopardizes U.S. leadership in this transformative technology at such a critical time.”
The senator believes that the passage of the law will not only provide “critical confidence” to cryptocurrency companies, but also improve the growth and liquidity of the US cryptocurrency market. To pass a new bill, it must be approved by the Senate, the House of Representatives and the President of the United States.
The federal government has stepped up efforts to explore the use of central bank digital currencies (CBDCs) in the US market amid regulatory reforms proposed by US senators.
The Office of Science and Technology Policy (OSTP) reviewed 18 CBDC projects, noting the various pros and cons of each system:
“Over time, the technology behind the license-free approach could improve significantly, which could make it more suitable for use in a CBDC system.”
A technical evaluation of the US CBDC system highlights the sector’s preference for independent equipment protection systems.
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