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The United States Representative Tom Emmer has again introduced a bipartisan bill called the Securities Clarity Act. The bill is aimed at defining how federal regulators treat digital assets under securities laws.
Crypto Bill Gets Democratic Co-Sponsors Backing
Emmer first introduced the bill in September 2020, but it didn't pass the Democrat-controlled House. The bill faded right after it was referred to the House Committee on Financial Services. However, Emmer is back with the bill, but this time with the support of Democratic co-sponsors; Darren Soto and Ro Khanna. The Securities Clarity Act aims to make regulators accept digital assets as commodities and not securities. This means if the law is passed, crypto firms would be free to sell and trade cryptocurrencies without registering them as securities with the Securities Exchange Commission (SEC). The bill argues that there should be a distinction between investment contracts and the assets that underlie them. This means that, while an investment contract can be a security, its accompanying token or coin is not. Emmer noted that while several countries have taken a different approach towards digital assets, the US has hindered the sector's growth, pointing to continued regulatory uncertainty surrounding crypto assets."There has been an unreasonable approach by regulators as to how federal securities laws should be applied to transactions involving the sale of blockchain-based tokens, and this lack of clarity is hurting American innovation."The Securities Clarity Act has since garnered endorsements and support from several blockchain and cryptocurrency stakeholders. This includes the Chamber of Digital Commerce, the Blockchain Association, and the Coin Center.