Check out this article about the FIT21 bill, also known as HR 4763, which aims to set up a regulatory system for digital assets in the US.
This bill is designed to tackle the specific nature of digital assets, ensuring that there are clear and strong protections for consumers.
It also aims to clarify which digital assets fall under the jurisdiction of the Commodity Futures Trading Commission (CFTC) and which ones are overseen by the Securities and Exchange Commission (SEC). This distinction is crucial since the definitions of "commodities" and "securities" differ significantly, impacting how each is regulated.
According to the bill, the CFTC will treat a digital asset as a commodity if it operates on a functional and decentralized blockchain. On the other hand, the SEC will classify a digital asset as a security if its blockchain is functional but lacks decentralization.
This fits with what I have always thought by analogy. A commodity such as gold can be mined but not created at will, whereas a security such as the debt issued by a company depends on a management team and can be issued more or less at will.
SEC always thinks otherwise. They tried to oppose this law, but there are still a lot of conflicts and controversies in the legislation, so major lawsuits, will continue. The uniswap case will be very interesting.
https://www.coindesk.com/policy/2024/05/29/us-lawmaker-at-center-of-crypto-negotiation-predicts-digital-assets-law-by-next-year/
"Patrick McHenry, the retiring chairman of the House Financial Services Committee, said he's confident that his crypto legacy will become permanent policy by 2025.
The so-called FIT21 crypto bill is now a "consensus product" of the House and can't be ignored, he said.
Rep. Patrick McHenry (R-N.C.) vowed the crypto industry won't have long to wait to get U.S. regulations, now that the U.S. House of Representatives has shown the way."
Biden vetoes bill overturning SAB 121
U.S. President Joe Biden vetoed a bill to overturn a controversial Securities and Exchange Commission bulletin, SAB 121, establishing accounting standards for firms that custody crypto.
Appropriate guardrails that protect consumers and investors are necessary to harness the potential benefits and opportunities of crypto-asset innovation, the president said in a letter to the U.S. House.
The bulletin has drawn controversy over the past year over concerns in the crypto industry that it could prevent banks from safeguarding digital assets.
U.S. President Joe Biden vetoed a bill to overturn a controversial Securities and Exchange Commission bulletin establishing accounting standards for firms that custody crypto.
"My Administration will not support measures that jeopardize the well-being of consumers and investors," said President Biden in a letter addressed to the U.S. House of Representatives posted on the White House website. "Appropriate guardrails that protect consumers and investors are necessary to harness the potential benefits and opportunities of crypto-asset innovation."
An election is coming up and the decision and the right one. When the election is over, the new president will no longer be so active in preventing the "necessary " laws.