On January 30, 2019, 2 pro-cryptocurrency bills were introduced to the US House of Representatives that aim to gather information on how to create proactive regulations, improve the laws governing cryptocurrency exchanges, prevent price manipulation, and encourage the adoption of cryptocurrencies.
The first bill is the US Virtual Currency Market and Regulatory Competitiveness Act of 2019 and the second is the Virtual Currency Consumer Protection Act of 2019.
Setting the Standards for the Cryptocurrency Industry
Both bills, sponsored by Representative Darren Soto, request that the Commodity Futures Trading Commission (CFTC), in consultation with the Securities Exchange Commission (SEC), produce reports with recommendations and policy proposals around cryptocurrency to congressional committees.
Ultimately, these 2 bills will provide the specialized guidance Congress needs in order to produce clear and concise legislation that fosters innovation and growth in the cryptocurrency industry.
According to the Virtual Currency Protection Act of 2019:
“Virtual currency could have a significant effect on the economy, and regulation of them may be important to protect investors, deter bad actors, create market certainty, and ensure American competitiveness in an evolving global marketplace.”
Preventing Market Manipulation
The first bill, the US Virtual Currency Consumer Protection Act of 2019 (H.R. 922), requires the CFTC to produce a report on ways to promote fair and transparent virtual currency markets by examining the potential for price manipulation.
The report will include information regarding the methods used to manipulate the price of cryptocurrencies, which cryptos are susceptible to being manipulated, the potential impact on investors if prices are manipulated, and preventative measures for price manipulation.
H.R. 922 also requests the CFTC to provide information on the extent of market surveillance they can conduct, and what disciplinary measures they can take against persons engaging in price manipulation of virtual currencies.
Establishing Competitive Cryptocurrency Regulations
The second Bill, the US Virtual Currency Market and Regulatory Competitiveness Act (H.R. 923), requests the CFTC to produce another similar report that provides recommendations for Congress to establish internationally competitive regulations to foster the growth and adoption of virtual currencies.
H.R. 923 also requires the CFTC provide clear definitions of which cryptocurrencies qualify as commodities. This will clarify once and for all which cryptocurrencies are labeled as securities and which are not.
The last requirements of this bill are for regulatory authorities to provide guidance and recommendations for creating a better regulatory structure for cryptocurrency exchanges including licensing, customer protection, and market supervision.
How These Bills Can Impact the Market
Overall, H.R. 922 and H.R. 923 will help establish sound cryptocurrency regulations that are internationally competitive and will foster innovation in the industry. The text from these bills indicates that Congresspeople are looking to change US legislation to promote growth in this revolutionary industry while protecting investors.
All in all, the US wants to prosper from the potential benefits virtual currencies can have on the economy, and these bills will help see that through. Therefore, it appears that the cryptocurrency industry can look forward to a new era of legitimization in 2019.
Do you think the US will establish cryptocurrency regulations that help the industry grow and prosper? Let us know what you think in the comment section below.
