US Congressmen Seek to Regulate Speculation in the Cryptoactive Market

The bills are directed to the financial regulators of that country. The idea is to propose new payment structures to replace the state system of money transmission

US congressmen Darren Soto and Ted Budd informed that they are preparing two bills that seek to reduce speculation in the cryptoactive market, as well as positioning the United States as a world leader in innovation in the sector.

The information was reviewed this week through a press release, in which members of Congress detailed that the projects called “Law of Consumer Protection of the Virtual Currency of 2018” and the “Law of Regulatory Competitiveness and the Market of Virtual Currency of the United States of 2018 “will ask the Commodity Futures Trading Commission (CFTC), along with other entities, to design in a more agreed plan to achieve the regulation of cryptoactives, so as to provide protection to consumers.

These documents were drafted in November of the current year, as detailed in the official communication. Between these two, the”Law of Consumer Protection of the Virtual Currency of 2018″instructs the CFTC to describe how price manipulation occurs in the cryptoactive market to obtain real details about the management of this market.

In June, the CFTC initiated an investigation of the main US exchange bureaus to learn about the manipulation of the Bitcoin market and futures. At that time, a negative response was obtained from the community.

“That is why we must ensure that the UnitedStates is at the forefront of consumer protection and the financial well-being of virtual currency investors, while promoting an environment of innovation to maximize the potential of these technological advances. These bills will provide data on how Congress can better mitigate these risks while promoting the development that benefits our economy”, the statement issued by thetwo congressmen said.

Thoroughly

The bill encourages the CFTC to formulate recommendations to avoid negative manipulation of the cryptoactive market, which leads to fraud or tax evasion.

Additionally, the “Law on Regulatory Competition and the Virtual Currency Market”, for its part, asks the CFTC to clarify which cryptoactives qualify as basic products, probably to know the levels of priority and hierarchy, if necessary.

So far, and since October of last year, the CFTC recognizes cryptocurrencies as merchandise. However, since then this definition has not been clear on the part of several regulatory entities, such as the SEC.

Among other innovations of the bill, congressmen recommend the CFTC to compare how other countries’ regulations work and promote the government adoption of cryptoactives in the United States, to analyze the costs and benefits of creating a new government structure for the transmission of money that replaces the current one and that, of course, is as safe as possible, using the characteristics of blockchain technology.

To conclude, the congressmen signed a joint declaration in which they recognized the potential of cryptoactive technology to be an engine of the country’s economic growth, which is a point in favor noted by this current and growing international payment method.

By María Rodríguez