US senator drafts bill to protect crypto exchanges from SEC

The document aims to provide regulatory clarity on the main problems faced by platforms

01.10.2022 - 08:15

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What’s new? US Senator Bill Hagerty, a member of the Senate Banking Committee, introduced a bill aimed at protecting cryptocurrency exchanges from “certain enforcement actions” by the Securities and Exchange Commission (SEC). “The Digital Trading Clarity Act of 2022” seeks to establish regulatory clarity regarding two of the main concerns faced by crypto exchanges — the classification of digital assets and related liabilities under current securities laws.

Information on the Senate website

What does the bill say? Senator Hagerty outlined the problems amid regulatory hurdles:

“The current lack of regulatory clarity for digital assets presents entrepreneurs and businesses with a choice: navigate the significant regulatory ambiguity in the U.S., or move overseas to markets with clear digital asset regulations.”

The aforementioned regulatory uncertainty, according to Senator Hagerty, discourages investment in the crypto industry and stifles job creation opportunities in the United States. The senator believes that passing the bill will not only provide “much-needed certainty” to the crypto business but will also increase the liquidity of the US cryptocurrency market. For the document to become law, it must be approved by the Senate, the House of Representatives, and the US President.

Earlier, the White House released the first-ever program to regulate cryptocurrencies in the United States, including ways to develop the financial services industry to facilitate borderless transactions and ways to combat fraud in the field of digital assets.

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