Explainer-What is in the US Senate's landmark crypto bill?
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Decentralized platforms have argued that they are unable to comply with bank-like rules because those rules mostly assume there is a legal entity that sits in the middle of transactions and which holds customer funds.
The Clarity Act
The Clarity Act would define when a platform is sufficiently decentralized. If it does not meet the bar, it would be treated as a financial institution and would be required to report suspicious activity and monitor transactions, similar to banks.Platforms would not be considered "decentralized" if they have the ability to block users, or if they have private permissions or hard-coded special privileges that other users do not have.
Tokenization
Tokenization generally refers to the process of turning financial assets—such as stocks, bonds, and even real estate—into crypto assets. Crypto companies have been investing in tokenized stock trading ahead of expected moves by the SEC to allow companies to experiment with blockchain-based stock trading.The bill would clarify that putting securities on the blockchain does not exempt them from securities laws. It also requires the SEC to further study the regulatory treatment of tokenized securities.
The bill would also mandate that, for regulatory purposes, tokenized securities generally be treated in the same way as the underlying securities they represent.
This article has been published in reuters.com via Yahoo News.
Explainer-What is in the US Senate's landmark crypto bill?
By Hannah Lang May 12 (Reuters) - The U.S.
finance.yahoo.com
