The U.S. Securities and Exchange Commission (SEC) is already working on developing a guide for classifying digital assets. It would be in line with the Clarity Act guidelines.
During an appearance before the House Financial Services Committee on Wednesday, February 11, SEC Chairman Paul Atkins noted that the project is being developed in conjunction with the Futures and Commodities Trading Commission (CFTC). This is intended to: Expand regulatory clarity for the sector.
Atkins was asked a question by Bitcoin technology advocate Brian Still. The lawmaker consulted him about the token classification project and its progress.
Both regulators commented. SEC and CFTC make that separation ‘clear’. And he assured that the guide is “consistent with what is set out in the Clear Act.” The latter has stalled in the legislative process.
Atkins said the token classification document “helps provide certainty about where one agency’s jurisdiction ends and another agency’s jurisdiction begins.”
the above It will put an end to the long-standing debate About the classification and scope of regulation of cryptocurrencies by SEC and CFTC. Situations that have escalated into legal battles, including lawsuits between Ripple Labs and the SEC itself.
“I think it would be ideal if we could combine this with what I call a “super application,” where we get alternative compliance certifications between the two agencies,” the SEC Commissioner emphasized.
In fact, the Clarity debate sparked a meeting between bankers and crypto entrepreneurs at the White House. It seeks consensus before the project is debated in the Senate.
The Token Classification Guide is part of the “Crypto Project”.
This guide is part of the Cryptography Project conducted by the SEC and CFTC. It aims to foster innovation by providing greater regulatory clarity in the cryptocurrency sector.
During the appearance, Mr. Atkins, a lawyer by profession, explained that the token classification guide: It will be published once the Clarity Act is signed into law.
As Congress completes this important work, the CFTC Chairman and I aim to close the legislative gap. Through our current joint project, the Crypto Project, we are looking to establish a token taxonomy that will provide both investors and innovators with a clear understanding of their regulatory obligations.
Paul Atkins, Chairman of the Securities and Exchange Commission;
Like Clarity, he recognized the need for a virtual currency market structure law, but believes it is the only way to “further protect the rules for the future.”
“A federal framework for the virtual currency market is long overdue,” he exclaimed.
CriptoNoticias reported that Atkins met with current CFTC Chairman Michael Selig in January of last year. This meeting was meant to conclude a historic agreement and reboot the cryptographic project. During the meeting, updates to rules and regulations were called for to avoid the migration of professionals from the mainland United States to other countries.
The creation of this guide took place within the framework of the discussions between bankers and crypto entrepreneurs that were generated by the Clarity Act and led to a meeting at the White House. It seeks consensus before the project is debated in the Senate.