The Cryptocurrency Act of 2020 Explained
The bill identifies three different types of digital assets. Each type has a corresponding federal agency required to provide regulation.
The three different asset-types include crypto-currencies, crypto-commodities, and crypto-securities. The bill went on to identify three agencies as ‘Federal Digital Asset Regulators’. These include the Commodity Futures Trading Commission (CFTC), the Securities and Exchange Commission (SEC), and the Financial Crimes Enforcement Network (FinCEN).
Each agency will work as the sole authoritative government agency for one digital asset type: FinCEN will be responsible for crypto-currencies, the SEC crypto-securities, and the CFTC crypto-commodities. Though still a draft, the bill went on to identify basic responsibilities as well.
Every ‘Federal Digital Asset Regulator’ (also referred to as ‘Federal Crypto Regulators’) must maintain a public record of all licenses, certifications, and/or registrations that it requires to create, issue, or trade digital assets.
In addition, FinCEN must work with the Secretary of the Treasury to create similar rules enforced by traditional financial institutions in order to trace cryptocurrency transactions. thetokenist.io