US Senator's Bill Aims to Protect Crypto Exchanges From SEC Enforcement Actions

The Digital Trading Clarity Act of 2022 aims to clarify regulations regarding the classification of digital assets and associated liabilities under existing trading laws. securities.

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US Senator Bill Hagerty, a member of the Senate Banking Committee, introduced legislation to protect cryptocurrency exchanges from “certain” Securities and Exchange Commission (SEC) enforcement actions .

The Digital Trading Clarity Act of 2022, introduced by Senator Hagerty, aims to clarify regulations around two main concerns plaguing crypto exchange institutions: (i) classification of digital assets and (ii) liabilities related under existing securities laws.

A bill to provide intermediaries with 'digital assets a safe haven from certain law enforcement actions by the Securities and Exchange Commission, and for other purposes. Source: congress.gov

Sen. Hagerty provided an overview of the issues amid the regulatory hurdles:

“The current lack of regulatory clarity for digital assets presents entrepreneurs and businesses with a choice: navigate significant regulatory ambiguity in the United States or move overseas to markets with clear regulations on digital assets."

The aforementioned regulatory uncertainty, according to Senator Hagerty, discourages investment in crypto spaces and hinders job creation opportunities in the United States. As a result, the blockade "jeopardizes the leadership of the United States in this transformational technology at such a crucial time".

The senator believed that the legislation, once passed, would not only provide "much-needed certainty" for crypto businesses, but would also improve the growth and liquidity of U.S. cryptocurrency markets.

To establish legislation as law, the bill must be approved by the Senate, the House, and the President of the United States.

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