The bill proposes defining which cryptocurrencies should be regulated as securities and which should be regulated as commodities. These rules would prevent the SEC from imposing fines on any trading platform simply because it offers access to digital assets. In addition, various “ancillary activities”-providing a digital wallet, developing and publishing software, supporting blockchain nodes, and so on-will be exempt from SEC regulation.
Also as part of the bill, congressmen are proposing to change and modernize SEC rules on customer protection, record-keeping and dealing with digital assets in general. Nevertheless, the document suggests that the SEC will retain the authority to combat fraud using digital assets. At the same time, companies that offer trading in the spot market with fiat currencies will be required to register with both the SEC and the Commodity Futures Trading Commission (CFTC).
The CFTC itself will regulate digital assets recognized as commodities. They should include payment symbols and digital goods. In this case, the regulator will have the power to monitor transactions, but will not have control over the architecture of assets.
Patrick McHenry, chairman of the Financial Services Committee, and Glenn Thompson, chairman of the Agriculture Committee, worked on the bill. Congressmen French Hill and Dusty Johnson were also involved in its creation.
Congressmen Darren Soto and Tom Emmer had previously submitted a similar document, but their document focused more on assets sold in ICOs.