A U.S. lawmaker from Arizona has come up with the new Cryptocurrency Act of 2020 while under novel coronavirus quarantine. The proposed bill describes the types of digital assets and indicates federal agencies for particular asset types. The congressman wants America to remain the global leader in digital currency tech. Rep. Paul Gosar introduced the bill early in March when the coronavirus situation was not so severe.

The lawmaker along with some of his co-workers underwent home-quarantine after being exposed to a COVID-19 patient. He stated, “We may be quarantined, but our work continues. I just introduced the Crypto-Currency Act of 2020, a bill that my team has worked hard on over the past several months.” He added that regulatory clarity around digital assets is a real need today for financial institutions and common folks to benefit from this booming industry. There should be no confusion or uncertainty that might avert people doing business in the crypto arena.

USA is now the epicentre of COVID-19, a deadly virus that has infected hundreds of thousands of people claimed more than 10,000 lives as of 6 April in the country and the number is steeply rising. Gosar, an experienced member of the U.S. House of Representatives from Arizona serving since 2011, is also an indirect victim of the corona crisis.

He went for home quarantine as he and some of his staff members were exposed to an individual tested positive for COVID-19 and hospitalized afterwards. The exposure was in the form of a handshake during the Conservative Political Action Conference (CPAC). Although he did not experience fever, cough or other flu-like symptoms, he obeyed health advice, “I will remain at my home in Arizona until the conclusion of the 14 day period following my interaction with this individual.” He also reminded that his Washington D.C. office was closed for a week.

What the bill has to say?

The proposed bill aims to clarify which federal agencies regulate virtual currencies and enable those agencies to inform the public or businesses the need for any licenses, permits, or registrations to develop such currencies. It also aims to identify other activities of those regulatory agencies. The bill provides definitions of “crypto-commodity,” “crypto-currency,” and “crypto-security.”

Gosar suggested that Crypto-commodities can be regulated by the Commodity Futures Trading Commission (CFTC), while cryptocurrencies can be regulated by the Financial Crimes Enforcement Network (FinCEN) and the Comptroller of the Currency, and crypto-securities and “synthetic stablecoins” can be regulated by the Securities and Exchange Commission (SEC). Stablecoin is further defined as the U.S. or foreign jurisdiction issued currency which “is collateralized on a one-to-one basis by such currency, and such currency is deposited in an insured depository institution.”

Another important aspect of the bill is the monitoring of virtual asset transactions. FinCEN would take the responsibility to craft rules necessary for each cryptocurrency to enable tracing of any transaction and individuals involved in such transaction in a way similar to traditional currency transactions practised by financial institutions. FinCEN would also conduct audits of each central bank-backed stablecoin to make sure that all those are backed by fiat currencies issued by the U.S. or a foreign government.

America should lead the cryptocurrency market

As already mentioned, Rep. Gosar wants America to remain the global leader in cryptocurrency. Realising the potential of this sector he said, “As this technology spreads to emerging markets, the United States can continue to guide the development of cryptocurrency.” According to his opinion, America must not ignore this promising industry to keep alive in this time of intense global competition in terms of economy. He also believes cryptocurrency can provide the oppressed and bankless people with an opportunity to contribute to the global economy and improve their living standards. Cryptocurrency is a beacon of hope not only for the Americans but much of the world, given the rapid growth of this industry.

The lawmaker acknowledged the contribution of Metal Pay CEO Marshall Hayner and crypto investor Erik Finman in preparing his Cryptocurrency Act of 2020. Gosar emphasised the role of the government to create a context where common folks can work on promising ideas. The only thing needed now for the lawmaker is a decent support from the government before America can become the next big hub of digital assets.