According to a report by Bitcoinist on April 2, the US Congress has just introduced two new cryptocurrency bills aimed at solving the problem of cryptocurrency price manipulation and improving the US competitive advantage in emerging industries.
(Source: Wikimedia )
HR 922 bill is designed to deal with price manipulation issues
Representatives of the US Congress, Darren Soto and Warren Davidson, proposed two new blockchain-related bills on January 30 this year.
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The first bill was called "HR 922 – The Virtual Money Consumer Protection Act of 2019", which aims to address the price manipulation problem in the virtual currency field. According to the document, the chairman of the Commodity Futures Trading Commission (CFTC) will be required to submit a report detailing the possibility of price manipulation in virtual currency, including the means of price manipulation, how virtual currency is affected, and The impact of price manipulation on investors and hazards.
In addition, the document defines the term “virtual currency”:
Virtual currency represents digital value, but it does not have the status of a legal currency, as well as the function of exchange media, accounting units or value storage.
HR 923 Act aims to increase US competitiveness in emerging industries
Another new bill is called HR 923 – 2019 US Virtual Money Market and Regulatory Competitiveness Act. If the bill is passed, it will ask the chairman of the Commodity Futures Trading Commission to submit a report after consulting with the head of the US Securities and Exchange Commission and other necessary federal agencies. The report needs to detail how to improve. US competitiveness in the field of virtual currency.
The report will include comparative studies of existing US and international legislation to assess the benefits of virtual currency, the impact of blockchain technology on US commodity markets, and legislative advice.
The HR 923 Act also requires regulators to propose a new regulatory structure for cryptocurrency exchanges, including consumer protection, federal licensing, and market regulation.
Continuity of legislation
It is worth noting that the above two bills were proposed after the introduction of the General Classification of the United States. As Bitcoinist has previously reported, the Commonwealth Classification proposes that cryptocurrencies should not be classified as securities, so once the cryptocurrency item becomes a fully operational network, the Securities Act will no longer apply to encryption. currency.
The definition of virtual currency in HR 922 is very close to the definition proposed in the General Classification, which may represent a US Congress attempting to define a definition for future regulatory requirements.
At the end of 2018, US Securities and Exchange Commission Chairman Jay Clayton said that the lack of a series of supporting safeguards and the existence of “significant risks of manipulation” hindered the approval of the Bitcoin ETF. Given that the primary purpose of the HR 922 Resolution is to identify ways to deal with such issues, its adoption is likely to help the Bitcoin ETF be approved.
Of course, these bills still have a long way to go before they can become law. They need to be approved by the Subcommittee, the House of Representatives, the Senate, and finally signed by the President.