Crypto in your 401(k)? A grace period for crypto exchanges? There are bills for that.

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(Kitco News) – U.S. cryptocurrency-related legislative activity is on the rise as the global push to establish a regulatory framework for crypto and launch central bank digital currencies (CBDCs) continues to intensify .

In the US Senate, a new bill has been introduced by Sen. Bill Hagerty (R-Tenn.) that proposes creating a haven for cryptocurrency exchanges that might otherwise face legal ramifications for the registration of unregistered titles.

The text of the bill seeks to establish a two-year grace period for crypto exchanges that would shield them from Securities and Exchange Commission (SEC) enforcement actions for listing tokens considered unregistered securities by the regulatory body. The start of the grace period begins once the commission has officially determined that a token is considered an unregistered security.

The bill also stipulates that exchanges will not be subject to legal action for failure to register as a broker or national securities exchange during the grace period.

Eventually, however, all exchanges listing determined tokens as securities will be required to register as brokers or national securities exchanges.

In the event the bill becomes law, the SEC will still be able to label the tokens as unregistered securities through regulations, filings, and enforcement actions, but the Commodity Futures Trading Commission would have the right to object. . Exchanges can also take legal action to appeal any decision to a court, where a judge would then be tasked with deciding the status of the security.

Bill faces a difficult road; however, as the limited time remaining in the current legislative session diminishes the chances of it passing anytime soon.

Cryptos in your 401(k)

A separate bill recently introduced by three congressional Republicans seeks to expand the type of investments that managers of 401(k) plans and other defined contribution plans can make, including the ability to invest in assets digital.

Dubbed “The Retirement Savings Modernization Act,” the bill would also allow financial advisers to recommend cryptocurrencies, as well as other traditional investment vehicles like private equity or hedge funds, without legal liability.

Outgoing Senate Banking Committee member Pat Toomey (R-Pa.), Sen. Tim Scott (RS.C.) and Rep. Peter Meijer (R-Mich.) are the sponsors of the bill. Statements made by members of Congress with the bill’s introduction cite inflation and “fiscal uncertainty” as motivation for expanding retirement investment options.

Limitations on 401(k) investments have also been criticized as reducing overall returns relative to traditional pensions despite the fact that far more Americans rely on 401(k)s than traditional pensions for their retirement needs.

“Our legislation will provide the millions of U.S. savers invested in defined contribution plans the opportunity to enhance their retirement savings through access to the same wide range of alternative assets currently available to savers with defined contribution pension plans. defined benefit,” Senator Toomey said.

The fate of this bill, too, remains unresolved; however, as Toomey is not running for re-election and Meijer recently lost his primary election to Republican challenger Jonh Gibbs. It’s still possible that the bill could be slotted into a larger year-end tax bill, but that remains to be seen.

Disclaimer: The opinions expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. This is not a solicitation to trade commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article accept no responsibility for loss and/or damage resulting from the use of this publication.


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