Sign Up on MEXC
Highlights
- The Law Commission of England and Wales proposes a new category of personal property for crypto assets in its latest report.
- The draft bill aims to address the inadequacies of the current legal framework, providing clear property rights for digital assets.
- The UK government is reviewing the proposal, which aligns with broader regulatory efforts by the Bank of England and the Financial Conduct Authority.
The Law Commission of England and Wales has proposed a groundbreaking classification for cryptocurrencies and other digital assets. The independent body, tasked with reviewing and recommending law reforms, has submitted a report to the UK government urging the creation of a new category of personal property specifically for crypto assets.
UK Regulatory Bodies’ Approach to Crypto Assets
The Law Commission of England and Wales has submitted a groundbreaking proposal to the government, urging the creation of a new category of personal property specifically for crypto assets. This recommendation comes as part of the Commission’s final report on digital assets, published on July 30.
In its report, the Law Commission highlighted the inadequacies of the current system, which categorizes personal property into only two types: things in possession (tangible property) and things in action (intangible property, such as debts or rights). The Commission argued that digital assets, including cryptocurrencies and non-fungible tokens (NFTs), often possess qualities of both categories, leading to complications in legal proceedings and dispute resolution.
To address this issue, the Commission has proposed the establishment of a “third category” of personal property. This new classification aims to ensure that property rights related to digital assets are clearly defined and enforceable. The Commission believes that this change will better accommodate and protect the unique features of digital assets.
Accompanying the proposal is a draft bill that calls for the separate categorization of crypto assets. This legislation is intended to create a robust legal framework that will support the growth of the digital assets sector in England and Wales. The draft bill allows courts to develop the specifics of this third category, providing flexibility for future amendments without disrupting legal proceedings for other forms of personal property.
The government is currently reviewing the Law Commission’s recommendation and the proposed legislation. This development comes at a time when other UK regulatory bodies are also taking steps to address the evolving digital asset landscape. The Bank of England and the Financial Conduct Authority recently issued a joint consultation on draft guidance for their Digital Securities Sandbox, which aims to facilitate testing of distributed ledger technology for trading and settlement of digital securities.
Also Read: Bank of Japan Rate Hike Leads to Bitcoin Volatility, All Eyes on US Fed Meeting
US Developments in Cryptocurrency Regulation
In the United States, there have been notable developments in cryptocurrency regulation and legislation. Senator Cynthia Lummis of Wyoming has introduced a bold Bitcoin bill that proposes using the cryptocurrency to address the national debt.
The bill, unveiled at The Bitcoin Conference, would require the Federal Reserve to hold Bitcoin as a strategic reserve asset. This unprecedented move reflects growing interest in cryptocurrency at the highest levels of government and could significantly impact US monetary policy if enacted.
Simultaneously, a federal judge has made a landmark ruling in the ongoing case between Ripple Labs Inc. and the SEC. The judge determined that Ripple’s XRP token is a security when sold to institutional investors, but not when sold to the general public. This nuanced decision has been widely interpreted as a victory for the crypto industry, potentially setting a precedent for how other cryptocurrencies are classified and regulated in the future.
Also Read: Binance Announces Listing Of These Trending Crypto Ahead Market Recovery
- Bitcoin’s Bull Cycle May Peak This Month, Peter Brandt Says
- Ethereum Whales Buy $204M ETH Amid Rebound Above $4,400
- SOL Rises as Nasdaq-listed Forward Completes $1.65B Raise For Solana Treasury
- Breaking: U.S. CPI Inflation Rises To 2.9% YoY, Bitcoin Reacts
- Over $4 Billion in Bitcoin and Ethereum Options Expiring After US CPI
- Pi Network Price Wyckoff Theory Signals a Surge as One Whale Keeps Buying
- ETH Price Prediction As Bitmine and SharpLink Continue ETH Buying Spree- Analyst Predicts $7K Next
- AVAX Price Prediction as Avalanche $1B Treasury Gains Momentum – Is $55 in Sight?
- Pump Price Forecast as $12M Buyback Fuels Scarcity — Is $0.01 in Sight?
- SUI Price Prediction as Mysten Labs Meets SEC Ahead of ETF Decision—Is $7.5 Next?
