In 2008, an anonymous person or group of people known only as “Satoshi Nakamoto” released a now-seminal document, the white role of bitcoin, which introduces a peer-to-peer system for the cost of exchange without intermediaries.
Through this revolutionary concept, the idea of a “digital asset” was born. Soon, developers and entrepreneurs have expanded in this concept, the development of systems in which value is exchanged not only for its own sake, but for services and digital products.
In the past decade, innovators have built unauthorized, decentralized networks for computing services, file storage, asset exchange, cellular coverage, Wi-Fi connectivity, mapping tools, lending services, and more. Because digital assets can be used for services that anyone can offer and anyone can access, use-as-financial and non-financial-are potentially endless.
Despite this promise, these networks have proven criticism. The Biden-Harris administration attempted to prevent modern progress through an uninterrupted campaign of suits and actions that implemented without providing the clarity of the digital asset ecosystem and its newcomers and users who are extremely needed.
The Securities and Exchange Commission (SEC) failed to clarify how existing security laws apply and – more importantly – do not apply to digital asset transactions. The lack of clarity of this regulation has kept the digital asset ecosystem, which drives the growth outside the United States to the constituents who have established clear road policies.
To address these failures, Congress has begun exploring ways to modernize regulation structure to accommodate the unique properties of digital properties and how they are available in our financial system. These efforts have completed a series of bills aimed at clarifying how digital assets are available in the financial system, ensuring investor protection and care care.
In the -118 Congress, the House Committees on Financial Services and Agriculture Launched a historical combined effort To meet the regulation of the digital asset. This led to the first passage of the Bipartisan digital asset market structure structure in a congressional chamber. This partnership enables Congress to meet the long -term ecosystem challenges and place the foundation for a Fit for Purpose framework under President Trump’s leadership.
This Congress, both the House and the Senate are dedicated to creating a clear path for the digital asset ecosystem. As we move forward, it is important that the plot is both balanced and steel-clad for the future. To accomplish this, we set principles for digital asset law.
Six principles
First, the law must promote change. We seek to protect opportunities for innovators to create and use digital assets, while ensuring users can legalize each other.
Second, the law should provide clarity for the classification of property. Users of digital properties should clearly understand the nature of their holdings, including whether they qualify as security or uncertainty.
Third, the law must codify a framework for the issuance of new digital assets. The framework should allow those who gives to raise capital by selling new digital assets under the jurisdiction of the SEC. It should protect retail investors and require developers to disclose with -the -less information to help users understand the unique properties of digital asset networks.
Fourth, the law must establish regulation of market exchanges and mediators. Centralized, custodial exchange and intermediary that facilitates transactions with non-security digital assets should comply with the same requirements as other financial companies.
Congress should provide the Commodity Futures Trading Commission (CFTC) with the authority to impose the requirements of creatures needed to protect customers, limit conflicts of interest, ensure appropriate implementation of customer orders, and provide disclosure.
Fifth, the law must establish the best skill for the protection of customer assets. Entities registered with the SEC or CFTC must separate customer funds and hold them qualified carers. Customer funds should also be protected during losses.
Sixteen, and finally, the law should protect modern decentralized projects and activities. Congress should ensure that decentralized protocols, which bring about various risks and benefits, are not subject to regulations designed for centralized, custodial firms. In preserving decentralized activities, Congress should also protect an individual’s right to study on their own digital assets.
We look forward to the same committees that continue with our legislative work to fulfill President Trump’s request to make America the “Crypto Capital of the Planet.” In May, our committees will take over our second joint hearing to discuss the law of the digital asset market structure.
Our goal is to bring the more necessary clarity of regulation to the rapid emerging industry, ensuring that America continues to lead to the shaping of the future of digital finances.
