*By Tanaya Macheel* Cryptocurrencies and digital assets are ideally left to the jurisdiction of the U.S. Commodity Futures Trading Commission, rather than the Securities and Exchange Commission, according to Congressman Darren Soto (D-Fla.). "Securities laws can be very intense and hurt the market unless it’s truly a security,” Soto told Cheddar Thursday. “Overall, we hope to establish jurisdiction and classifications so we can bring confidence and clarity into the market." Soto introduced two bills in December with Rep. Warren Davidson (R-Ohio). One, "The Virtual Currency Consumer Protection Act of 2018," directs the CFTC to research price manipulation, suggests regulatory changes, and establishes when a crypto asset qualifies as a security. The other, "The U.S. Virtual Currency Market and Regulatory Competitiveness Act of 2018," seeks to ensure the U.S. stays competitive in the global industry by mandating research and issuing policy recommendations to better accommodate the market. How exactly to classify cryptocurrencies has been a hot, complex topic in the United States, as various regulatory agencies have different standards. For example, the IRS views virtual currencies as property, for the purposes of federal taxes. The SEC views them as currencies – but considers initial coin offering, or ICO, tokens to be securities. The crypto industry spends significant time exploring when or how a digital asset is a security, to what to extent and how existing SEC laws apply to it, or should. But many forget the SEC doesn’t create the laws. Now, Congress appears ready to at least attempt to change the laws to ensure consumers stay safe and the U.S. doesn’t fall behind other countries that have tried to establish themselves as leaders in the crypto industry ー such as Japan, or even countries like Malta and Barbados. “There’ll be a role for the CFTC and FTC to play and we’ll be saving the SEC for true securities, knowing predominantly that these are commodities and currency transactions,” Soto said. "Those are agencies with a lighter touch and we have grown consensus among the industry that they’d be appropriate for the majority of these types of cryptocurrency transactions and the nature of these assets." Though it’s difficult to determine when to expect responses from the CFTC, Soto said he wants to at least "establish a rudimentary structure to instill confidence and clarity, so we can continue to dominate in this area for the future of our economy.”

Share:
More In Business
A US tariff exemption for small orders ends Friday. It’s a big deal.
Low-value imports are losing their duty-free status in the U.S. this week as part of President Donald Trump's agenda for making the nation less dependent on foreign goods. A widely used customs exemption for international shipments worth $800 or less is set to end starting on Friday. Trump already ended the “de minimis” rule for inexpensive items sent from China and Hong Kong, but having to pay import taxes on small parcels from everywhere else likely will be a big change for some small businesses and online shoppers. Purchases that previously entered the U.S. without needing to clear customs will be subject to the origin country’s tariff rate, which can range from 10% to 50%.
Southwest Airlines’ new policy will affect plus-size travelers. Here’s how
Southwest Airlines will soon require plus-size travelers to pay for an extra seat in advance if they can't fit within the armrests of one seat. This change is part of several updates the airline is making. The new rule starts on Jan. 27, the same day Southwest begins assigning seats. Currently, plus-size passengers can pay for an extra seat in advance and later get a refund, or request a free extra seat at the airport. Under the new policy, refunds are still possible but not guaranteed. Southwest said in a statement it is updating policies to prepare for assigned seating next year.
Load More