Connect with us

Regulation

US legislators introduce bill for in-depth study of blockchain in commerce

Published

on



A trio of United States House Representatives — two Democrats and a Republican — have officially introduced a new bill to spur more in-depth analysis of blockchain technology in Congress.

On Sept. 1, Rep. Darren Soto (D-FL), Rep. Brett Guthrie (R-KY) and Rep. Doris Matsui (D-CA) introduced a new bill to the House, which was subsequently referred to the Committee on Energy and Commerce. 

The bill proposes to direct the U.S. Secretary of Commerce, in consultation with the Federal Trade Commission (FTC), “to conduct a study and submit to Congress a report on the state of the blockchain technology and use in consumer protection, and for other purposes.”

In May, Cointelegraph had obtained draft legislation prepared by Rep. Guthrie entitled the “Advancing Blockchain Act,” which would require the Secretary of Commerce and the FTC to conduct a study on the impact of blockchain technology on U.S. businesses in interstate commerce within two years.

The draft legislation had, among other goals, sought to rank the U.S. relative to other countries’ national blockchain strategies. 

It also called for a clear determination of the jurisdiction and expertise of different federal agencies in relation to blockchain technologies.

Neither this week’s bill nor the earlier draft legislation mention cryptocurrencies or digital assets, but instead limit their focus to blockchain. 

Guthrie’s co-sponsor on this week’s bill, Rep. Soto, has previously advocated keeping cryptocurrencies under the oversight of the Commodities and Futures Trading Commission (CFTC) and FTC.  Soto argued at the time that these agencies have a “lighter touch” than the Securities and Exchange Commission (SEC). 

For blockchain and cryptocurrency enthusiasts, Rep. Soto will likely be a familiar name due to his role as co-chairman for the Blockchain Caucus, a governmental group focused on blockchain-related policy. 

He has been a sponsor and co-sponsor, respectively, of the Token Taxonomy Act and the Digital Taxonomy Act, among other initiatives.

For her part, Rep. Matsui, together with Rep. Guthrie, introduced a bill in Feb. 2019 to direct the Secretary of Commerce to establish a working group that would recommend to Congress a definition of blockchain technology.

This was later taken up in a Senate bill authored by Senator Todd Young (R-IN), entitled the “Blockchain Promotion Act” of 2019.



Source link

Regulation

New York authorizes first Yen stablecoin operator in the US

Published

on

By



New York has given the first authorization to a stablecoin backed by the Japanese Yen to operate in the U.S.

Per a Dec. 29 announcement, the New York Department of Financial Services has granted Japanese firm GMO-Z.com a charter to handle U.S.D. and Yen-backed stablecoins in New York. 

Given New York’s status as a global center, the NYDFS is the most prominent state financial regulator in the U.S. It is also one of the most aggressive. A pass to operate in New York often opens up the rest of the country. 

GMO’s charter is as a limited liability trust company rather than a full bank, the principle difference being in authorization to handle deposits. While a stablecoin operator typically needs the ability to hold reserves of the pegged asset, GMO’s charter limits its rights to hold other kinds of deposits not central to its ability “to issue, administer, and redeem” its stablecoins. 

The right to issue such non-depository charters has been a bone of contention between state regulators like the NYDFS and national banking regulators in the U.S. 

GMO president and CEO Ken Nakamura said: “We’re breaking ground with our move to issue the first regulated JPY-pegged stablecoin, which many see as a safe haven asset.” 

The NYDFS recently made changes to its famous BitLicense, including a conditional format that buddies up newly licensed firms with existing licensees. The first conditional BitLicense went to PayPal, facilitating the launch of its new crypto services earlier this fall with the help of longstanding licensee Paxos.