The new proposed regulations concerning digital assets present a welcome change, elucidating the cryptic and sometimes confusing legal landscape of the cryptocurrency market. As published on JD Supra, the regulations come as part of the Infrastructure Investment and Jobs Act (IIJA), promising much-needed clarity in the often-vague world of digital assets.
The proposed IIJA regulations bring into scope the expanded definition of a “broker”. Within this new terms of reference, it now includes individuals or entities who provide facilitative services which help actualize sales. Centralized exchanges have, unsurprisingly, been categorized under digital asset “brokers”. A noteworthy exclusion, however, are the crypto miners and stakers, demonstrating the lawmakers’ acknowledgment of the unique characteristics these players bring to the digital assets field.
The law, however, leaves room for more specificity when it comes to digital asset wallet providers and decentralized financial protocols. While the proposed regulations bring forth a degree of clarity, it holds that the definition of a broker remains somewhat ambiguous and could benefit from additional explication. Clearly, further enhancements are required to fully account for the specific roles and operations of different players within the digital asset landscape.
The IIJA’s newly proposed regulations represent a proactive effort to demystify the often-complex digital asset world, guiding the participation of various actors within the space. It is pivotal that such progress continues in order to provide more certainty and a sound legal framework for this rapidly growing sector of the modern economy.