Being a company that is based on usage of cryptocurrency, AGI Group and the Crypto-Currency Act of 2020 is linked at its core. Inaugurated in draft form to the House of Representatives on Friday, December 20, 2019, the much anticipated Crypto-Currency Act of 2020 makes notable progress towards defining the regulatory framework surrounding Digital Assets.
Crypto-Currency Act of 2020 Summary:
The legislation does not create any new regulatory agencies. It separates Digital Assets into three broad categories and assigns an existing regulatory body to each of the below categories:
Crypto-currencies: These tokens are defined as representations of US currency and are “reserve-backed digital assets” such as “stablecoins” that are collateralized by synthetic or physical assets held in a “correspondent banking account.” This category would be the smallest of the three categories.
Regulator: Financial Crimes Enforcement Network (FinCEN)
Coins Included: TrueUSD (TUSD), USD Tether (USDT), Paxos Standard, (PAX), USD Coin, (USDC)
Crypto-commodities: These tokens are based on commodities or other “economic goods or services.” We believe this would encompass all “Utility Token” blockchain projects such as those related to medical records, identity, web services etc.
Regulator: Commodity Futures Trading Commission (CFTC)
Coins Included: Digix, Gold, Tezos, Binance Coin, Cosmos
Crypto-securities: These are tokens that represent “debt, equity, and derivative instruments that rest on a blockchain,” including those governed by “smart contracts and collateralized by other [digital assets].” We believe that this would include smart contract platforms such as Ethereum, EOS, and others, especially when used to transact value (as opposed to record data). Bitcoin and other “value transfer” cryptocurrencies would fall into this category.
Regulator: Securities and Exchange Commission (SEC)
Coins Included: Bitcoin, Ethereum, Ripple, Litecoin, Bitcoin Cash, EOS, Tron