In 2008, a person or an anonymous group of people known as “Satoshi Nakamoto” published a now seminal document, the White Bitcoin Paper, introducing a peer-to-peer system for the value of the exchange without intermediaries.
With this revolutionary concept, the idea of a “digital asset” was born. Shortly after, developers and entrepreneurs have expanded this concept, developing systems where value was exchanged not only for itself, but for digital services and products.
Over the past decade, innovators have built decentralized networks without authorization for IT services, file storage, asset exchange, cell coverage, Wi-Fi connectivity, mapping tools, loan services, etc. Because digital assets can be used for services that anyone can offer and anyone can access, use cases – both financial and non -financial – are potentially endless.
Despite this promise, these networks courted criticism. The Biden-Harris administration has tried to block this innovative advance thanks to an incessant campaign of proceedings and application measures without providing the regulatory clarity of the digital asset ecosystem and its innovators and users so desperately necessary.
The Securities and Exchange Commission (SEC) has failed to clarify the way in which existing securities laws apply and – more importantly – do not apply to digital asset transactions. This lack of regulatory clarity has stifled the digital asset ecosystem, pushing the growth of the United States to jurisdictions that have established clear road rules.
To remedy these failures, the congress began to explore the means of modernizing the regulatory structure to adapt to the unique characteristics of digital assets and how they could be used in our financial system. These efforts have resulted in a series of invoices aimed at clarifying how digital assets could be used in the financial system, ensuring the protection of investors and promoting innovation.
At the 118th congress, the chamber committees on financial services and agriculture launched a historic joint effort to treat the regulation of digital assets. This led to the very first adoption of the bipartite legislation of the structure of the digital asset market in a Congress Chamber. This collaboration has enabled Congress to meet the long -standing challenges of the ecosystem and lay the foundations for an adjusted framework for the use of President Trump.
This congress, both in the Chamber and in the Senate, undertakes to create a clear route for the ecosystem of digital assets. As we advance, it is crucial that the frame is both balanced and in iron for the future. To do this, we have established principles of legislation on digital assets.
Six principles
First, legislation must promote innovation. We seek to protect opportunities for innovators to create and use digital assets, while guaranteeing users of transactions legally with each other.
Second, legislation must clarify the classification of assets. Users of digital assets should clearly understand the nature of their assets, including if they are considered to be titles or non-security.
Third, legislation must codify a framework for the publication of new digital assets. The framework should allow transmitters to raise capital thanks to the sale of new digital assets under the jurisdiction of the dry. It should protect retail investors and oblige developers to disclose relevant information to help users understand the unique characteristics of digital asset networks.
Fourth, legislation must establish the regulation of exchanges and intermediaries of the cash market. Centralized and kept exchanges and intermediaries facilitating transactions with non -security digital assets should adhere to requirements similar to that of other financial companies.
Congress should provide the Commodity Futures Trading Commission (CFTC) the power to impose requirements for the entities necessary to protect customers, limit conflicts of interest, guarantee appropriate execution of client orders and provide disclosure.
Fifth, legislation must establish best practices for the protection of customer assets. Entities recorded with the SEC or the CFTC should be required to separate customer funds and maintain them with qualified guards. Customer funds must also be protected during bankruptcy.
Sixth, and finally, legislation must protect from innovative decentralized projects and activities. Congress should ensure that decentralized protocols, which have different risks and advantages, are not subject to regulations designed for centralized and guardian companies. By protecting decentralized activities, the congress must also protect the right of an individual from self-attaching his digital assets.
We look forward to the two committees pursuing our legislative work together to meet the demand of President Trump to make America the “cryptographic capital of the planet”. In May, our committees will organize our second joint audience to discuss the legislation on the structure of the digital asset market.
Our objective is to provide regulatory clarity essential to this rapidly evolving industry, ensuring that America continues to lead to shape the future of digital finance.
