In line with the US President Donald Trump’s organizational agenda that aims to enhance innovation and adopt the broader currencies in the country, Fox Eleanor Territ is a journalist I mentioned The draft discussion of the new market structure from the House of Representatives aims to clarify the treatment of digital goods.
Specifically, it confirms that the transactions that involve the sale of digital goods will not be classified as securities, provided that these transactions are not granted to buy any royal interest in the source, profits or assets.
The proposed legislation seeks clarity in encryption transactions
This proposed legislation Indicate That if the individual purchased or sells digital commodities in the secondary market – instead of the source directly – the transaction will not automatically lead to the establishment of the laws of US Securities unless they are granted a form of ownership or demanding the company’s profits or assets. This distinction is crucial to enhance a more suitable environment for encryption and investment circulation.
The draft law defines many critical amendments to the current laws, especially the Securities Investor Protection Law for the year 1970. In particular, it defines “investment contracts” in a specific way that excludes Digital goods From the classification as securities.
This means that the secondary market transactions that involve encryption assets may not be subject to strict regulations that are usually applied to securities under various businesses, including the Securities Law of 1933 and the Investment Advisers Law of 1940.
Matthew Sigl highlights the main changes
Matthew Segel, Head of Digital Asset Research at Vanck Asset Management Company, summary The effects of the draft law by highlighting several major points.
One of the main changes is to remove income and wealth boundaries for retail buyer, which opens the market to a wider audience. In addition, the draft law eliminates the need for certified investors checks, which leads to simplifying access to investment opportunities in encryption assets
Another important aspect of the draft is the introduction of the apparent decentralization test, which requires that there is no single entity on a unilateral control of a digital commodity. Projects that do not meet this standard will face audit, as holders of more than 10 % of the project must be revealed while remaining central.
The draft law also provides exemptions for The decentralized financing (Defi) Protocols, as long as they are not a crane and do not exercise the user’s money.
Moreover, Stablecoins is defined without classifying it as securities, providing a clear that affects the need for these increasingly popular digital assets.
It also defines an optional early registration course for exporters and emphasizes the need to set the common rules between SEC and the CFTC futures, which indicates a cooperative approach to regulating encryption.
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