US Senator Bill Hagerty could face legal action for listing unregistered securities cryptocurrency introduced a bill to create a safe haven for its stock exchanges.
Bill Will Protect Cryptocurrency Exchanges Against SEC For 2 Years If Enacted
According to the text of the bill, the law will provide a two-year exemption period from enforcement actions against crypto exchanges that list tokens considered unregistered securities by the Securities and Exchange Commission (SEC).
The exemption period will begin when the commission decides that a token is an unregistered security. Exchanges will not be subject to legal action as they do not register as a brokerage house or national stock exchange during the exemption period.
The bill is expected to be made public tonight.
If the bill becomes law, the SEC may continue to qualify tokens as unregistered securities through notices, sanctions, or rulemaking, although the Commodity Futures Trading Commission (CFTC) has the right to appeal.
As CFTC Chairman Rostin Benham strives for more direct authority over digital assets, SEC Chairman Gary Gensler said the SEC’s bitcoin Continuing his long-standing argument that most cryptocurrencies outside of the U.S. are securities offerings, he wants to hold his institution in a key position on this asset class.
The SEC is currently investigating nine altcoin listings on Coinbase that it believes are unregistered securities.
Hagerty serves on the Senate Banking Committee, which has decision-making powers over laws such as the SEC and the bill it proposes. However, the odds of the bill becoming law this time of Congress are slim due to the limited time remaining in session.
Under the terms of the bill, exchanges listing tokens designated as securities would have to register as brokerages or national securities exchanges.
To avoid disruption of services, they will also need to enter into agreements with other brokerage firms or banks to continue their operations if the SEC labels a listed token as a security.
*Not investment advice.
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