This September 24, two significant crypto-based bills were presented to the US Congress – the first seeks to differentiate commodities from securities, while the other aims to impose the regulations of commodities to its rightful regulators. The duo bill seeks to put a dividing wall between the two confusing digital assets, thus, rendering the recognition and regulation of each much straightforward.
The first bill – The Securities Clarity Act – was proposed by Tom Emmer, the National Republican Congressional Committee Representative’s Chairman. Just as stated above, this particular bill aims to separate distinctions between digital asset commodities and securities. Emmer’s bill is expected to amend present laws on securities to exempt tokens from the very definition of being a security.
As explained by the chief policy officer of the Digital Chamber group, Amy Davine Kim, when a company issues a particular token with an investment contract in place, they would first need to register it to the SEC in order to qualify for the exemption. Kim notes that the token subjected by the said investment contract shouldn’t essentially be defined as a security. Emmer’s bill reinforces this by stating that digital tokens containing security offerings are commodities and will always be.
As per the other bill, it was presented by Representative Mike Conaway alongside other noteworthy co-signers. The particular bill submitted was introduced as the Digital Commodity Exchange Act. It aims to transition the regulation of crypto exchanges from the SEC to the CFTC – rendering all digital currency firms to operate under one stable federal infrastructure. This would also mean that retail cryptocurrencies will now fall under the category of commodities rather than securities, thus, further separating the two entities.