US Senator Bill Aims To Protect Crypto Exchanges From SEC

October 2, 2022 8:51 pm Comments

United States Senator Bill Hagerty just proposed a new bill that will aim to protect crypto exchanges from certain SEC enforcement actions.

The name of the bill is the “Digital Trading Clarity Act of 2022” where the bill will attempt to provide more regulatory clarity for crypto exchanges that operate in the US.

So far, many exchanges have received pressure from the SEC to become registered with them although some exchanges like Kraken have no intention to register.

The pressure from the SEC and the lack of regulatory clarity has been straining many of these crypto businesses and Senator Hagerty has highlighted that in his statements.

CoinTelegraph reports:

Sen. Hagerty outlined an overview of the problems amid regulatory hurdles:

“The current lack of regulatory clarity for digital assets presents entrepreneurs and businesses with a choice: navigate the significant regulatory ambiguity in the U.S., or move overseas to markets with clear digital asset regulations.”

The aforementioned regulatory uncertainty, according to Sen. Hagerty, discourages investments in the crypto spaces and hampers job creation opportunities in the United States. As a result, the blockade “jeopardizes the United States’ leadership in this transformational technology at such a crucial time.”

The senator believed that the legislation, when passed, would not only provide “much-needed certainty” to crypto businesses but also improve the growth and liquidity of U.S. cryptocurrency markets.

To establish the legislation as law, the bill needs approval from the Senate, the House and the President of the United States.

It is still to be determined on whether or not this bill will gain enough traction in Congress to actually pass and restrict the SEC’s actions.

After all, this is not the first time that members of Congress have voiced their dissatisfaction with the SEC.

At the same time, there are also many speculations of the federal government’s efforts to study the feasibility of the creation of a central bank digital currency.

Very recently, it has already been mentioned that if a CBDC were to be created, it would not be anonymous which contradicts one of the main selling points of crypto.

DailHodl reports:

This legislation is an important step toward providing digital asset intermediaries with much-needed certainty and removing the barriers to entry currently impeding the growth and liquidity of US cryptocurrency markets.”

No specific details were given as to which SEC enforcement actions would be covered by the bill to protect crypto exchanges.

Earlier this year, Hagerty also introduced the Stablecoin Transparency Act, a bill that would clarify which crypto assets qualify as stablecoins and how they’re to be backed.

The bill would mandate stablecoins be backed by US dollars or government securities with maturities of less than 12 months. It would also require issuers of the dollar-pegged crypto assets to disclose their reserves in audited reports.

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