Recently, the Biden administration is advancing a tax plan that may “smash the cryptocurrency ecosystem”, which has attracted great attention from the crypto community. However, another item called “2021 Digital Asset Market Structure and The “Investor Protection Act” (The Digital Asset Market Structure and Investor Protection Act of 2021) has also been proposed in the United States. It imposes very strict regulations on the digital currency industry, especially stablecoins, and has little influence. The tax amendment is currently being proposed.
The 2021 Digital Asset Market Structure and Investor Protection Act is a comprehensive digital asset supervision and legal framework, which was proposed to Congress by Congressman Don Beyer of Virginia. It involves almost all important gray areas that restrict the continued existence of cryptocurrencies in the U.S. market environment. One of its main goals is to formulate definitions that must be enforced by law for “digital assets” and “digital asset securities,” including: Placed within the jurisdiction of the United States Commodity Futures Trading Commission (CFTC); and placed “digital asset securities” within the jurisdiction of the United States Securities and Exchange Commission (SEC).
Since the bill proposes that the U.S. Department of the Treasury has full authority over fiat currency stablecoins, and it also expressly requires that the Federal Reserve be granted the power to issue digital dollars, it is expected that the bill is likely to give fiat currency anchored stablecoins. Have a huge impact.
According to the bill, both the US Commodity Futures Trading Commission and the US Securities and Exchange Commission will be responsible for providing legal clarity on the regulatory status of the top 90% of crypto assets ranked by market value and trading volume. In addition, in order to enhance transparency, strengthen reporting mechanisms and anti-money laundering enforcement, the bill aims to implement formalized supervision of all digital assets and digital asset securities based on the Bank Secrecy Act, and classify digital assets and digital asset securities It is a “currency tool”.
At the same time, the bill also requires the central bank’s digital currency to clearly designate the Federal Reserve as the only institution authorized to issue digital dollars, and aims to pave the way for the central bank’s digital currency issuers legally. Not only that, the bill also requires the U.S. Secretary of the Treasury to have the power to allow or prohibit stablecoins based on the U.S. dollar and other legal tenders. This means that once the bill is approved, the U.S. Treasury secretary can almost decide on a certain currency “on his own.” The fate of the US dollar stable currency.
Speaking of the Secretary of the Treasury, Janet Yellen has already expressed great interest in regulating stablecoins. At the meeting of the President’s Financial Market Working Group, she suggested that the government must act quickly to establish a regulatory framework for stablecoins. It is expected that the relevant regulatory plan will be released in the next few months. In addition to Janet Yellen, Federal Reserve Chairman Jerome Powell also emphasized the need to establish a strong regulatory framework for stablecoins. He said that if stablecoins will become an important part of the payment field, they need to be developed for them. An appropriate regulatory framework.
Going back to the proposed “Digital Asset Market Structure and Investor Protection Act of 2021”, the Act also restricts the details of investor protection measures, requiring the Federal Deposit Insurance Corporation (FDIC), the National Credit Union Administration (NCUA) and The US Securities Investor Protection Corporation (SIPC) made a clear explanation on the issue of digital assets, telling investors that “digital assets” will not be as protected as traditional bank deposits or securities.
In order to prevent fraud, the bill also proposes that any digital asset that is not recorded on a public distributed ledger within 24 hours should be reported to the digital asset trade repository registered with the U.S. Commodity Futures Trading Commission (digital asset trade repository). Digital asset transaction repository refers to the collection and maintenance of information or records (including public distributed ledger transactions on the chain and off-chain transactions) related to transactions or positions or terms and conditions in a digital asset sales contract signed by any person with a third party. It is to provide a centralized record keeping facility for any digital asset. However, it should be noted that the digital asset transaction repository has nothing to do with the private ledger, the public ledger itself, and the private/public ledger operators, unless they also seek to aggregate or incorporate digital assets into off-chain transactions.
According to statistics, Circle’s USDC is the best-performing USD stablecoin so far this year, with circulation supply increasing by 577% to a record 26.58 billion. It can be seen from this that people’s demand for decentralized finance has surged at this stage, especially in 2021, the growth of stablecoins is very rapid.
If the “2021 Digital Asset Market Structure and Investor Protection Act” can be approved, the most influential is undoubtedly USD-based stablecoins, which gradually spread to the entire digital currency industry, and the U.S. Treasury Department has huge control over these stablecoins. It is also very concerning.
Part of this article is compiled from decrypt
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/analysis-of-the-2021-digital-asset-market-structure-and-investor-protection-act/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.