According to Gosar, this new law will facilitate US participation in the cryptocurrency market. The law stipulates that the SEC and FinCEN will be responsible for regulating stablecoins and cryptocurrencies, respectively.
Representative Paul Gosar revealed last March 9th that he had introduced the Crypto-Currency Act of 2020. The legislator and some members of his team are currently under quarantine after being exposed to an individual infected with the coronavirus.
The Congressman said that the quarantine has not prevented them from working hard on the draft legislation. Regulatory clarity about cryptocurrencies will allow them to make it easier for businesses, institutions and ordinary Americans to participate in this growing industry.
During the Conservative Political Action Conference (CPAC), Gosar shook hands with the aforementioned COVID-19 infected individual repeatedly. Despite saying that he has not experienced any symptoms, he said that he will stay at home in Arizona for a 14-day quarantine period. He added that his office in Washington DC will be closed for a week.
Contents of the Law
According to its text, the purpose of the proposed law is to clarify which federal agencies regulate digital assets. The idea is to require that they notify the public of any federal licenses, certifications, or registrations required to create or trade such assets, among other purposes.
According to the draft legislation, the Commodity Futures Trading Commission (CFTC) should be the main regulator of “crypto products”. This law also proposes that the Financial Crime Execution Network (FinCEN) and the Office of the Comptroller of the Currency (OCC) should be the regulators of cryptocurrencies. Besides, it suggests that the Securities and Exchange Commission (SEC) should be the regulator of crypto-securities and synthetic stablecoins.
The draft legislation also considers that FinCEN should issue rules that require that cryptocurrencies, including synthetic stablecoins, facilitate tracking of transactions with them and those the people involved. Likewise, FinCEN should conduct audits of the reserves supporting stable cryptocurrencies to ensure that each stablecoin is fully backed by the currency issued by the USA or a foreign government.
Gosar Wants the USA to Be Leader
Last March 9th, Gosar stated that it is essential that the USA remains the world leader in cryptocurrencies. He added that the USA can continue to guide the development of this technology as it spreads in emerging markets.
The Congressman believes that cryptocurrencies represent a light of hope for a large part of the world’s population. For example, they offer forgotten and oppressed people a way to participate in the global economy. Therefore, the USA must remain part of this fast-growing industry.
The Representative noted that they received guidance from the CEO of Metal Pay, Marshall Hayner, and the cryptocurrency investor, Erik Finman, for his Cryptocurrency Act of 2020.
The Legislator said that the role of the government is to create an environment where bold ideas can work for the American people. He added that supporting the Crypto-Currency Act of 2020 ensures that the USA will be at the center of the future of commerce, the banking system, and negotiations, among others. Gosar considers that any representative that cares about voters’ livelihoods should analyze his draft legislation.
By Alexander Salazar