A new bill is under consideration according to which crypto exchange companies within the country are to be brought under the national regulatory framework.
US law department has successfully launched its bill under the titled “The Digital Commodity Exchange Act of 2020”. The draft of the proposed Bill was announced by the US Representative for Texas’s 11th Congressional District, Mr. Michael Conaway yesterday (i.e. Thursday the 24th September 2020).
Mr. Conaway said that the proposed Bill has been prepared to introduce “digital commodity exchanges” as a federal definition by placing it under its respective legal category. The proposed bill has been drafted in an effort to give full recognition to digital currencies by bringing them under the Commodities Exchange Act. Under the bill, digital currencies have been classified as one of the branches of commodities and since the commodities are governed under the Commodities Exchange Act, therefore, the digital currencies being commodities will be governed under the same law.
Mr. Conaway also said that for the time being the crypto exchange firms have been finding it hard to get them registered with different states within the US as every state has its own laws, rules, and regulations and since one exchange is operating in different states then the compliance as well as obtaining of money transmission licenses from 49 different states, becomes cumbersome and in some cases, impossible. Accordingly, the Bill has been prepared which is still under the process of getting approved, and once approved and implemented then the crypto exchange firms will need not to go to different states offices for seeking approvals and licenses, but rather they can cooperate with the federal institutions, told Mr. Conaway.
He also said that the proposed Digital Currency Exchange Act, 2020 also enables crypto exchange firms to deal with initial coin offerings as there is no embargo put in place on them in the proposed Bill.
According to news sources, the experts are of the view that if the proposed Bill is passed and implemented in letter and spirit then much of the problems being faced by crypto exchange firms, such as regulations relating to exchanges, will be addressed and taken care of accordingly and an environment of compliance of regulation will be promoted automatically across the country.