WASHINGTON—Rep. Michael Conaway (R-TX) has introduced a bill that outlines a new framework for digital currencies, reportedly treating the e-currencies like commodities under the Commodities Exchange Act, The Chain Bulletin Reported.
The bill proposes crypto exchanges be put under federal jurisdiction, allowing them to operate in the entire U.S. rather than applying for 49 different state licenses separately.
“If approved by Congress, the act will serve as a regulatory body for cryptocurrency, creating legal clarity for token issuers and lowering the barrier to entry for exchanges hoping to operate in a compliant manner,” The Chain Bulletin reported.
According to language describing the bill itself, “The proposed legislation builds on the existing commodity market practices required of Futures Commission Merchants (FCMs) to protect customer assets.”
The act was proposed in accordance with an earlier announcement by The Conference of State Bank Supervisors, who said there may be plans in the works to streamline the application process for startups to avoid the need for more than 50 state and territory licenses in order to operate nationally.