A Republican senator has introduced new legislation that would shield cryptocurrency exchange platforms from some SEC enforcement proceedings.
According to a recent news release, Tennessee Representative Bill Hagerty is proposing the Digital Certainty Act of 2022 as a method of protecting cryptocurrency exchanges from SEC overreach and giving legislative clarity about the classification of virtual assets.
Haggerty asserts that legislative uncertainty impedes the development of the cryptocurrency business by making investment and job creation difficult for US-based crypto enterprises.
“The current absence of legal certainty for digital assets confronts entrepreneurs and enterprises with a choice: negotiate the substantial regulatory ambiguity in the United States, or relocate to other countries with clear digital asset legislation.
Unfortunately, this uncertainty hinders investment and job development in the United States and endangers the country’s leadership in this transformative technology at a key moment.
This bill is a significant step toward providing digital asset intermediaries with much-needed stability and reducing the hurdles to entry that are now limiting the development and liquidity of US cryptocurrency markets.”
It was not specified which SEC enforcement actions would be protected under the law to safeguard cryptocurrency exchanges.
Hagerty also presented the Stablecoin Transparency Act earlier this year, a law that clarifies which crypto assets qualify as stablecoins and how they are supported.
The law would require stablecoins to be backed by U.S. dollars or short-term government securities. In addition, issuers of dollar-pegged crypto assets would be required to declare their reserves in audited reports.
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