US Senator Bill Hagerty, a member of the Senate Banking Committee, introduced legislation to protect cryptocurrency exchanges from “certain” Securities and Exchange Commission (SEC) enforcement actions.
The Digital Trading Clarity Act of 2022, introduced by Senator Hagerty, aims to clarify regulation around two primary concerns plaguing crypto exchange institutions – (i) classification of digital assets and (ii) related liabilities under existing securities laws.
Senator Hagerty provided an overview of the problems amid the regulatory hurdles:
“The current lack of regulatory clarity for digital assets presents entrepreneurs and businesses with a choice: navigate significant regulatory ambiguity in the United States or move overseas to markets with clear asset regulations. digital.”
The aforementioned regulatory uncertainty, according to Senator Hagerty, discourages investment in crypto spaces and hinders job creation opportunities in the United States. As a result, the blockade “jeopardizes U.S. leadership in this transformative technology at such a crucial time.”
The senator believed that the legislation, once passed, would not only provide “much-needed certainty” for crypto businesses, but would also improve the growth and liquidity of U.S. cryptocurrency markets.
To establish the legislation as law, the bill must be approved by the Senate, the House, and the President of the United States.
Related: US lawmakers propose amending cybersecurity bill to include crypto companies reporting potential threats
Along with regulatory reforms recommended by US senators, the federal government has stepped up efforts to study the feasibility of central bank digital currencies (CBDCs) in the US market.
In line with Biden’s directive, the Office of Science and Technology Policy (OSTP) analyzed 18 CBDC design choices — outlining the various pros and cons of each system:
“It is possible that the technology underpinning a permissionless approach will improve significantly over time, which could make it more suitable for use in a CBDC system.”
Technical evaluation of a CBDC system in the United States highlighted the department’s inclination toward an off-registry, hardware-protected system.