The latest bill defined the digital tokens and emerging digital technologies falls under securities law. The Securities Clarity Act, H.R. 8378 verifies digital assets as commodities. However, the critics did not hold back. Critics have voiced that the regulatory authorities have nothing to justify their unreasonable approach.
Critics further added that not a single regulatory body can justify that how the rules and regulations regarding the commodities can be applicable on the transaction of the digital token’s sales and purchase. However, the crypto community has reacted aggressively against these actions, by saying that these actions are driven by bias against the crypto market. This will do nothing but hurt the process of innovations.
On the other hand, some of the congress members have said that regulatory uncertainty has halted the growth of the blockchain business for a long time. As far as the institutional support is concerned, the bill is backed by the Chamber of Digital Commerce, the Blockchain Association, and Coin Center.
The bill was initially introduced in September 2020, by Tom Emmer. However, the bill waited for the democrat’s decision and the U.S Senate’s signatures. The bill is now passed by the Democratic Representatives. But the final approval will be granted by the legal body.
If the bill gets approval from the legal body, the digital assets will be treated as commodities, not securities. In simple words, any new crypto startup can begin trading cryptocurrency with total freedom, without any registration with the Securities Exchange Commission (SEC). Those who acted in favor of the bill said that regulatory uncertainty was one of the biggest factors hindering blockchain from growing.
Since there is an overwhelming majority speaking in the favor of this bill, people do believe that it’s the right choice and there is no logical answer to oppose the bill. The regulatory authorities have claimed that the approach might seem unreasonable, but it has been legalized by the majority of the democratic representative who is holding public office. The legislators also added that the bill has considered the broader perspective here.
The bill will improve the consumer protection act. It will provide clarity about the ownership of the digital assets. It will also urge crypto exchanges to improve financial transparency. There has been a strong argument in favor of the legislation. The majority do believe that if crypto market legislation remains uncertain, traders will always remain double-minded about the security and validity of the money they will earn as a return on investments. That is why the new proposed bill is welcomed and approved by the U.S. House of Congress. The majority of the democrats for the approval of the bill.