A new bill that would shield cryptocurrency exchange platforms from some Securities and Exchange Commission (SEC) enforcement actions is being introduced by a Republican senator.
Bill Hagerty of Tennessee is promoting the Digital Certainty Act of 2022 as a way to protect cryptocurrency exchanges from SEC overreach and provide legal clarity over how virtual assets are to be classified.
According to Haggerty, regulatory ambiguity is hindering the growth of the crypto business by making it difficult for US-based crypto enterprises to attract investment and create jobs.
In the press release, Haggerty also said that the current lack of regulatory clarity for digital assets gives business owners and entrepreneurs the option of either navigating the significant regulatory ambiguity in the US or moving abroad to markets with clear regulatory frameworks for digital assets.
He added, this uncertainty deters investment and job growth right here in the country and imperils American leadership in this game-changing technology at this important juncture.
In addition, Haggerty said,
“This legislation is an important step toward providing digital asset intermediaries with much-needed certainty and removing the barriers to entry currently impeding the growth and liquidity of US cryptocurrency markets.”
Hagerty also introduced the Stablecoin Transparency Act earlier this year, a piece of legislation that would make it clear which digital assets qualify as stablecoins and how they are to be backed.
Stablecoins would have to be backed by US dollars or government assets with maturities of less than a year under the proposed legislation. Additionally, the issuers of the crypto assets tied to the dollar would have to publish their reserves in audited reports.