Organizations in the U.S. crypto sector have been calling for clear regulation at federal level by legal provisions for some time now. Crypto firms have been dealing at state level with different regulations so far, or there is a complete lack of regulatory clarification in some cases. For example, for over two years it has been unclear whether the XRP token of Ripple is a security.
The Republican U.S. Congressman Paul Gosar wants to remove this confusion and has presented draft legislation in the House of Representatives called "Crypto-Currency Act 2020." As noted by Forbes, the bill clarifies the classification of cryptocurrencies into different categories and removes the U.S. federal authorities 'responsibility for this.
The bill splits crypto-currencies into "crypto commodities" and "crypto-securities." While the Commodity Futures Trading Commission (CTFC) is to be responsible for crypto commodities, the proposal the Securities and Exchange Commission (SEC) for crypto-securities and the Financial Crimes Enforcement Network (FinCEN).
The bill also proposes that the Treasury Secretary, through the FinCEN, issue regulations that will allow individuals conducting these transactions to monitor transactions for each cryptocurrency in a manner similar to that needed for foreign exchange transactions by financial institutions. Therefore, all authorities must inform the public of all federal licenses and registrations required to create or trade in such properties.