{"id":2294,"date":"2022-06-21T11:00:00","date_gmt":"2022-06-21T15:00:00","guid":{"rendered":"https:\/\/www.deeds.com\/articles\/?p=2294"},"modified":"2024-04-25T23:18:43","modified_gmt":"2024-04-26T03:18:43","slug":"new-regulation-for-digital-assets","status":"publish","type":"post","link":"https:\/\/www.deeds.com\/articles\/new-regulation-for-digital-assets\/","title":{"rendered":"New Regulation for Digital Assets"},"content":{"rendered":"\n
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Here It Comes\u2026<\/em><\/strong><\/p>\n\n\n\n

Internet-assisted real estate investing keeps evolving, just as the internet itself does. Now, it\u2019s possible to convert stored value \u2014 even real estate \u2014 into digital assets. Fractional shares in a property become securities, issued as tokenized shares<\/em><\/a> to be traded on a secondary market. These investments and trades are verified and etched into a digital ledger, known as the blockchain.<\/p>\n\n\n\n

Of all the kinds of assets that can be tokenized, real estate is the fastest growing sector. The multi-billion-dollar global market for tokenizing real estate is an area of promising opportunities.<\/p>\n\n\n\n

Here\u2019s the thing, though. These fractional shares are bought with cryptocurrency. While there\u2019s a great advantage in profiting from properties without having to own the buildings, the question is whether crypto assets are adequately guarded from risks.<\/p>\n\n\n\n

Buyers, businesses, and regulators want clarity.<\/p>\n\n\n\n\n\n\n\n

How Legislators Are Responding<\/h2>\n\n\n\n

The chair of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, points out that SEC rules do cover many digital currencies \u2014 those that offer returns to investors who stake them.<\/p>\n\n\n\n

But are all digital currencies securities? And is the current regulatory structure really adequate to guard the public? A few so-called stablecoins have collapsed, not being properly backed up with real value.<\/p>\n\n\n\n

Now, there\u2019s the Responsible Financial Innovation Act. In June 2022, Senators Cynthia Lummis (R-Wyoming) and Kirsten Gillibrand (D-New York)\u00a0introduced this comprehensive bill<\/a> to examine, regulate, and facilitate the use of digital assets. It\u2019s the most thorough effort to regulate the crypto arena to date. \u00a0<\/p>\n\n\n\n

Senator Gillibrand stated:<\/p>\n\n\n\n

Digital assets, blockchain technology and cryptocurrencies have experienced tremendous growth in the past few years and offer substantial potential benefits if harnessed correctly. It is critical that the United States play a leading role in developing policy to regulate new financial products, while also encouraging innovation and protecting consumers.<\/em><\/p>\n\n\n\n

The bipartisan bill splits digital assets into two groups:<\/p>\n\n\n\n