Arizona Congressman Paul Gosar introduced the U.S. Cryptocurrency Act of 2020 on March 9, 2020.
Coinspeaker detailed that this legislation plans to categorize digital assets into three categories: crypto commodities, crypto securities, and cryptocurrencies. The U.S. CFTC, the SEC, and the Treasury’s FinCEN will be the three agencies in charge of regulating them.
For example, Bitcoin will be considered as a crypto-commodity under this legislation. Stablecoins will be considered as crypto-currencies. According to certain sources, crypto-securities will be categorized under the following description: “all debt, equity, and derivative instruments that rest on a blockchain or decentralized cryptographic ledger.”
Christopher Hamman of Coinspeaker claims that this legislation “has been in the works for a bit.” A December version of this bill was reportedly leaked.
Sources claim that the Congressman had worked with industry insiders. Ben Goldey who is the Communications Director for Congressman Gosar commented:
Since this is such a niche issue, we worked with stakeholders and outside groups/experts to get a good sense of the kind of clarity that the industry needed. We chose to gather stakeholder support before working toward cosponsors.
One of the key stakeholders is Bitcoin investor Eric Finmman. According to sources, Finnman has played a crucial role in getting the legislation drafted.
That bill that leaked, we were experimenting with a couple of things, that was our second draft. We’re thirty-two versions away from that.
Certain congressmen are coming to grips with the reality of Bitcoin and other cryptocurrencies.
As volatile as these currencies may be, they are still quite resilient.
The jury is still out on their viability, but they should still be given a chance to compete on the market.
The fiat-based monetary system is in desperate need of competition from other monetary sources.