The US Senate to reform the encryption market structure? What will come after that star-news.press/wp

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The US Senate Banking Committee has issued a new draft aimed at reforming the country’s digital asset market structure, which put in place regulatory clarity and the protection of investors in the foreground.

The US Senate Banking Committee published a draft discussion entitled “The Responsible Financial Innovation Law”, with the aim of creating a clear framework for classifying and regulating digital assets.

The drafts, issued on July 22, were defined by the law of clarity, which was presented earlier this month.

What is the effect of this in general, and what should stakeholders expect?

A step towards more clarity

New an offer It depends on the work of the momentum by improving the main terms and determining the scope of power for American organizational agencies.

It also calls for public reactions from stakeholders through the financial sectors and encryption.

Senator Tim Scott, who heads the Banking Committee, stressed the goal of the draft of updating the requirements of old disclosure under the Securities Law of 1933.

According to him, the current framework is limited to addressing the unique characteristics of digital assets.

Senator Scott,

“My colleagues and I participated in the House of Representatives and the Senate the same goal: providing clear rules for the road to the digital assets that protect investors, enhance innovation, and maintain the future of digital financing in America.”

One of the most important updates in the draft is to redefine “auxiliary assets”, a category that refers to the digital assets associated with investment contracts, but it lacks features such as stock rights, profits, or debt claims.

This classification helps in determining whether digital assets are under the supervision of the Securities and Stock Exchange Committee) or it should instead organize it by the CFTC (Communes Trading).

Instead of using the previously proposed decentralized “maturity” test, the Senate drafts a based on rights.

Under this system, CFTC organizes auxiliary assets, while SEC oversees others. Projects can establish additional self -assets, but the Supreme Education Council has 60 days to object to the classification.

The Senator Cinema Lomes, head of the sub -committee of digital assets, also involved in the formation of this draft, said that the procedure is a step towards ending the organizational uncertainty that continues to appear in the industry.

According to Lomes,

“This discussion project represents a deliberate and balanced approach that would provide the clarity that our creators need while providing strong protection for consumers. We cannot allow organizational confusion to continue leading the American innovation abroad.”

Beyond the classification of assets, the draft also addresses wider issues. It proposes updates to securities laws that aim to update organizational practices, deter illegal financial activity, and support innovation in banking services.

The background and the following

Currently, the Senate Banking Committee collects reactions to the draft discussion. A final version can be eventually submitted as an official legislation, subject to listening sessions, modifications and additional discussion.

Earlier in July 17, the House of Representatives Act passed with strong support from the two parties, 294 votes in favor and 134 against.

However, Ampcrypto indicated that it had faced recovery from groups such as Americans for Financial Reform (AFR), which argued that the draft law weakens consumer protection and converts the supervision of this industry.