Draft Discussion on Cryptocurrency Market Structure Co-Issued by US Senator to Enhance Legal Framework and Strengthen Investor Protection.
The draft focuses on key issues such as Token classification, addressing regulatory fragmentation, banking activities, information transparency, and preventing illegal financial activities, building on existing law proposals.
- The draft is based on the CLARITY Act and the Lummis-Gillibrand proposal passed by the House of Representatives.
- Addressing issues such as Token classification, legal fragmentation, and illegal financial risks.
- Collecting public opinions on 35 important topics including regulatory agencies, Stablecoin, and investor protection.
What Are the Highlights of the Draft Discussion on Cryptocurrency Market Structure?
According to Tim Scott, Chairman of the US Senate Banking Committee, the draft is a collaborative effort to improve the cryptocurrency legal framework, aiming for greater transparency and safety for investors.
The draft combines contents from the CLARITY Act and Lummis-Gillibrand proposal while adding numerous regulations on Token classification, addressing regulatory fragmentation between agencies, banking issues related to cryptocurrency, and measures against financial fraud. This is an important step in reforming the US cryptocurrency market, attracting attention from many legal and financial experts.
"A clear and comprehensive legal framework helps the cryptocurrency market develop sustainably, protects investors' rights, and promotes innovation."
Tim Scott, Chairman of the US Senate Banking Committee, 22/07/2023
How Does the Draft Handle Token Classification and Regulatory Fragmentation Issues?
The draft emphasizes establishing a clear Token classification framework to avoid legal ambiguity, helping investors and businesses easily comply.
Fragmentation in regulations between agencies like SEC and CFTC has previously caused difficulties for cryptocurrency businesses. According to Eleanor Terrett, the draft proposes more specific management responsibility division and calls for public opinions to refine these details, aiming to limit overlap and power disputes.
What Solutions Does the Draft Propose for Stablecoin and Investor Protection Issues?
The draft introduces strict regulations on Stablecoin, aimed at ensuring financial stability and safety, which is a major concern for both legislators and the market.
Investor protection measures are also strengthened with clear regulations on asset custody, information transparency, and prevention of fraud activities like "pig killing" scam. According to financial experts' reports, these solutions are key factors in enhancing investor confidence in the cryptocurrency capital market.
"Strengthening rules on Stablecoin and user protection makes the cryptocurrency market safer, encouraging sustainable development."
Eleanor Terrett, cryptocurrency policy analysis expert, 2023
What Important Topics Are Being Consulted in the Draft?
The draft publicly seeks opinions on 35 key topics including SEC and CFTC management powers, exceptions for DeFi, cryptocurrency custody issues, and fraud forms.
The open consultation helps the draft improve legally while ensuring social consensus in managing this volatile market, according to Tim Scott's statement in July 2023.
Frequently Asked Questions
How Does the Draft Affect Cryptocurrency Investors?
The draft helps enhance protection, reduce fraud risks, and provide more transparency in regulations, increasing investor confidence.
How Are Tokens Classified?
Clear definitions of Token types help investors and businesses correctly identify products and easily comply with laws.
How Does the Draft Address Legal Fragmentation?
Clearly dividing responsibilities between SEC and CFTC, reducing disputes and facilitating cryptocurrency management.
How Are Stablecoins Regulated in the Draft?
Establishing strict regulations on stability and transparency requirements to minimize financial risks related to Stablecoin.
How Can Users Provide Feedback on the Draft?
The draft is open for public comments through the official US Senate website on the listed topics.
