The U.S. cryptocurrency scene might be on the way to seeing clear cut crypto regulations as Congress prepares to consider a new bill detailing modalities for digital asset oversight.

Clear Definition for Digital Assets

According to Forbes, the proposed bill titled ‘Cryptocurrency Act of 2020’ seeks to provide a clear framework for crypto regulations in the U.S. beginning with establishing protocols for defining digital assets.

The bill recognizes three distinct types of digital tokens — crypto-commodities, crypto-securities, and cryptocurrencies. According to the bill, crypto-securities cover all blockchain-based derivatives, equity, and debt instruments.

Secondly, the bill delineates the duties and responsibilities of Federal regulators regarding cryptocurrency. As part of the proposed bill, three U.S. regulatory agencies — Securities and Exchange Commission (SEC), Financial Crimes Enforcement Network (FinCEN), and the Commodity Futures Trading Commission (CFTC), will oversee crypto regulations in the country.

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