A newly-proposed law mandates that the Federal Reserve be given the authority to create a digital currency.
The recent law prompted by Virginia Democrat Beyer in the US proposes a broad laws and regulations approach to assets throughout the field.
The law, dubbed Digital Asset Market Structure and Investor Protection Act, addresses almost every significant grey region that remains in the domain of digital currencies in the United States.
Its major aim is to create statutory classifications for cryptocurrencies and crypto securities, putting the latter under the jurisdiction of the CFTC and others with the jurisdiction of the SEC. The SEC and the CFTC will be entrusted with giving legal clarification on the proper usage of the leading 90 percent of digital currencies in terms of market capitalization and exchanging volume.
Furthermore, the bill proposes to clarify regulatory obligations underneath the Bank Secrecy Act with every crypto asset and crypto-asset securities, categorizing the pair as the financial policy to enhance accountability disclosure and anti-money launder compliance.
Concerning CBDC, the law attempts to clear the path for the Fed Reserve to establish a digital currency by specifically identifying as the sole entity with such ability. Specifically, it requests for the United States Secretary of Treasury to hold the authority to allow or ban the use of USD and various stable coins.
The suggested shareholder security measures involve forcing the FDIC, NCUA, and SIPC to publish specific explanations regarding the non-coverage of the crypto industry, such that shareholders are informed their holdings aren’t protected in the same way that conventional financial assets or stocks are.
The government is proposing that every digital currency that is not registered on the publicly distributed ledger inside 24hrs be notified to a Commodity Futures Trading Commission-registered crypto deal database to avoid fraud.
Nevertheless, the word does not refer to the publicly or privately ledger directly, neither to its controller, except if they aim to summarise off-chain deals.
As previously disclosed, Secretary of Treasury Janet recently told regulatory authorities that govt needs to take action swiftly to create a policy structure for stablecoins, mentioning that those who pose potential risks to target consumers and may have broader implications for the nation’s monetary framework and overall security.