Paul Gosar, the Republican Congressman from Arizona, has officially proposed the Crypto-Currency Act of 2020. Although the title of the bill does not spell the word cryptocurrency correctly, it does aim to provide a clearer regulatory framework for cryptocurrency in the United States.
The bill will legally divide cryptocurrency into Crypto-Currency, Crypto-Commodity, and Crypto-Security. Essentially, Bitcoin (BTC) and cryptocurrencies like Bitcoin (BTC) would fall under Crypto-Commodity, cryptocurrencies that are backed by cash like Tether (USDT) would fall under Crypto-Currency, and initial coin offering (ICO) tokens would fall under Crypto-Security.
The most important part of the bill is that the Securities and Exchange Commission (SEC) would regulate Crypto-Securities, the Commodity Futures Trading Commission (CFTC) would regulate Crypto-Commodities, and the Secretary of the Treasury would regulate Crypto-Currencies.
That’s as opposed to the current situation where each cryptocurrency is being regulated by several government agencies at once, which creates a confusing, complex, and often contradictory regulatory landscape.
It remains to be seen if this bill will pass, but if it does it will make conditions more conducive for crypto space activity in the United States.