U.S. Congressman Don Beyer has introduced a new bill that seeks to regulate the crypto market, with the goal to protect investors and encourage innovation.
Rep. Don Beyer, a U.S. Congressman from the state of Virginia, has introduced new legislation aimed at regulating the cryptocurrency market. The bill, which was revealed on July 28, is called the Digital Asset Market Structure and Investor Protection Act and seeks to protect consumers and promote innovation.
Emphasizing innovation and regulation
Beyer had nothing but praise for the crypto market, though he stressed that a regulatory framework was necessary for the overall health of both the market and its investors. After saying that assets like bitcoin and Ethereum are “here to stay,” he lists the issues of the market and calls for U.S. laws to catch up,
“Digital asset holders have been subjected to rampant fraud, theft, and market manipulation for years, yet Congress has hitherto ignored the entreaties of industry experts and federal regulators to create a comprehensive legal framework. Our laws are behind the times, and my bill would start the long overdue process of updating them to give digital asset holders and investors basic protections.”
The specifics of the bill cover statutory definitions of digital assets and related securities, among many changes. Beyer says that this will provide the United States SEC and CFTC with authority over the asset class. It also calls for digital assets to be defined as monetary instruments under the Bank Secrecy Act, which would have it follow AML standards.
There is a raft of other changes in the bill, but the overall theme is investor protection, the prevention of the funding of illicit activity, and transparency. One more notable point is that, if passed, it would grant the Federal Reserve the authority to issue a dollar-based CBDC. This is something that is gaining traction within the government, and we may very well hear the U.S. officially announce the plan soon.
US crypto regulation seems all but certain
The new legislation is just one of a string of developments in the U.S. that indicates an incoming regulatory framework. U.S. authorities have become increasingly vocal about the crypto market, calling for regulation of stablecoins, investor protection, and modifications to securities laws to help deal with crypto cases.
Up until this year, the U.S. has been noticeably mum on the subject of regulation. But experts and industry insiders have pleaded for a review of the crypto market, saying that the nation has a lot to lose by dallying. The 2021 bull market, however, has seemingly sparked a new focus on the market, with investor protection, taxation, and legal definitions for digital assets becoming major talking points.
The White House itself recently referred to the crypto market, saying that it would partially offset the cost of its new infrastructure bill by strengthening tax enforcement on crypto. This makes it clear that authorities are working on a regulatory framework, something the Biden administration has been rumored to be working on.