Congress Considers Federal Crypto Regulators In New Cryptocurrency Act Of 2020

[Guest]

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The bill is called the ‘Crypto-Currency Act of 2020,’ and the stated purpose is to clarify which Federal agencies regulate digital assets, to require those agencies to notify the public of any Federal licenses, certifications, or registrations required to create or trade in such assets, and for other purposes.

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An initial review of the bill provides for the following:

(1) Assigns a definition of ‘Federal Digital Asset Regulator’ or ‘Federal Crypto Regulator’ to three agencies – the Commodity Futures Trading Commission (CTFC), the Securities and Exchange Commission (SEC), and the Financial Crimes Enforcement Network (FinCEN).

(2) Splits digital assets into three different categories: crypto-currencies, crypto-commodities, and crypto-securities.

(3) The Federal Crypto Regulator is assigned one of the categories and is defined as the sole Government agency with the authority to regulate:

(a) CFTC – crypto-commodities;

(b) SEC – crypto-securities;

(c) FinCEN – crypto-currencies.

 

https://www.forbes.com/sites/jasonbrett/2019/12/19/congress-considers-federal-crypto-regulators-in-new-cryptocurrency-act-of-2020/amp/?__twitter_impression=true

Looks like XRP is not a security and not a commodity.

I guess it's in the authority of the FinCEN to regulate XRP since Ripple was fined by FinCEN in 2015 already.

XRP = crypto-currency?

Edited December 20, 2019 by Guest

[Chris_Reeves]

1 hour ago, baggy23 said:

https://www.forbes.com/sites/jasonbrett/2019/12/19/congress-considers-federal-crypto-regulators-in-new-cryptocurrency-act-of-2020/amp/?__twitter_impression=true

Looks like XRP is not a security and not a commodity.

I guess it's in the authority of the FinCEN to regulate XRP since Ripple was fined by FinCEN in 2015 already.

XRP = crypto-currency?

The problem with this layout is that there are legitimate reasons why a digital asset could be classified as a crypto-currency and crypto-commodity. If used is cross-border remittances, I would call it a crypto-commodity but in other payment circumstances, it should be considered a currency. They're trying to fit legacy regulatory bodies into a new digital asset landscape. IMO they need to create a regulatory body that's sole focus is the classification, regulation and implementation of digital assets to serve as advisors to bodies like the Faster Payments Task force or the Federal Reserve for CBDCs. Square peg, round hole situation I see playing out here.

[WuWei]

I've gotta wonder when this will be far enough along to be up for a vote into law?  This could be the regulatory clarity that Ripple (& everyone else) has been waiting for. It's progress, however, it doesn't look like this will be written into law, or go into effect for some time to come. Until then xrp's price will be dependent upon bitcoin until it's network of corridors has grown sufficiently to demonstrate a rapidly growing utility. I believe that xrp will do great over the long haul, I'm just more of the opinion now, that short of bitcoin run-up, it's going to have to prove itself convincingly in a widespread fashion in order to break free on its own in the near term. One caveat to this would be, that if the soon to go into effect Japanese regulations significantly affect SBI's xrp usage - we'll soon see.

[XRPboi]

22 hours ago, WuWei said:

I've gotta wonder when this will be far enough along to be up for a vote into law?  This could be the regulatory clarity that Ripple (& everyone else) has been waiting for. It's progress, however, it doesn't look like this will be written into law, or go into effect for some time to come. Until then xrp's price will be dependent upon bitcoin until it's network of corridors has grown sufficiently to demonstrate a rapidly growing utility. I believe that xrp will do great over the long haul, I'm just more of the opinion now, that short of bitcoin run-up, it's going to have to prove itself convincingly in a widespread fashion in order to break free on its own in the near term. One caveat to this would be, that if the soon to go into effect Japanese regulations significantly affect SBI's xrp usage - we'll soon see.

When do the Japanese regulations go into effect? March 2020?

[WuWei]

4 hours ago, XRPboi said:

When do the Japanese regulations go into effect? March 2020?

I don't remember exactly, but it was either March or April of 2020. It's in a post with a link to SBI's latest corporate overview/release. The feeling that I got from what they wrote, was that they're really gearing up to go all out with xrp usage once the regulations actually go into effect. And conversely, that they were pretty much unable to do much until they do.

 

[Archbob]

From the definitiions, it looks like XRP would be a crypto-commodity. Crypto-currencies seems to be collatoralized which XRP isn't.