On Monday, June 7th, crypto Twitter (NYSE:TWTR) was thrown into a frenzy after the leak of a 600-page document, alleged to be the new U.S. crypto bill, made the rounds on the micro-blogging platform.
here you go(plz RT) pic.twitter.com/UOVhIUiUBuNew U.S. Crypto Bill Leaked— slam (@bot_slam) June 7, 2022
The new U.S. crypto bill provides the much needed regulatory clarity that the industry has been clamoring for, while also highlighting some of the key areas of concern for regulators.
The crypto bill is centred around user protection against the barrage of scams, hacks, and bank runs running rife. The measures place particular emphasis on decentralized finance (DeFi), stablecoins, decentralized autonomous organizations (DAOs), and crypto exchanges.
The Content of the New Crypto Bill
The new bill provides a new level of regulatory clarity for the crypto industry. Any crypto projects that deal in debt, equity, profit revenue, or dividend of any variety, will now be classed as commodities, not digital assets.
As per the leaked documents, DAOs, exchanges, and stablecoin providers will be required to become registered entities, and will allegedly be subject to taxes. The proposal also provides depository institutions, such as banks, with the right to issue stablecoins.
For crypto exchanges, compliance costs could increase, along the additional obligation to pay the government a portion of the fees charged to customers. In the case of bankruptcy, deposited assets are to be returned to users, rather than liquidated.
On the Flipside
- Although the proposed bill looks to be raising operating costs for crypto projects, the crypto community has welcomed the idea as it brings regulatory clarity to the nascent industry.
Why You Should Care
The proposed policies, which would bring a significant level of regulation to the crypto industry, seem to be particularly targetting DeFi projects and DAOs, making it difficult for anonymous projects to operate.
The bill confirms the stance of the CFTC that Bitcoin and ETH are commodities. Find out more below:
The May 23 Crypto Digest
SEC is Eyeing Crypto Exchanges for Regulatory Oversight
Learn about the direction regulators in Europe are taking in:
European Regulators Warn Crypto Investors About Risks of “Losing Everything”
