United Kingdom: Property (Digital Assets Etc.) Bill
• Confirms that certain digital assets (e.g., crypto tokens) can be recognized as property, even if they do not fit traditional categories of personal property under English and Welsh law.
• The bill does not specify which digital assets qualify; instead, courts will determine this on a case-by-case basis, allowing flexibility as technology evolves.
• Aims to provide legal protection and practical benefits for businesses and individuals using digital assets.
United States: FIT21 and Other Proposals
• The Financial Innovation and Technology for the 21st Century Act (FIT21) seeks to clarify definitions, regulatory oversight, and compliance for digital assets.
• FIT21 divides digital assets into categories: “restricted digital assets” (regulated by the SEC) and “digital commodities” (regulated by the CFTC), allowing reclassification as assets become more decentralized or functional.
• The bill aims to reduce regulatory overlap, combat fraud, and strengthen transparency and accountability in digital asset markets.
Other Jurisdictions: Bahamas Example
• The Digital Assets and Registered Exchanges Bill, 2024, defines digital assets broadly and sets out a registration and regulatory framework for digital asset businesses, including exchanges, custody, stablecoin issuance, and more.
• Requires businesses to register, meet solvency and security standards, and comply with annual reporting and auditing requirements.
Key Points
• Digital asset bills are designed to provide legal clarity, regulatory oversight, and consumer protection for digital assets.
• Approaches vary by jurisdiction, but common themes include flexible legal definitions, clear regulatory assignments, and robust compliance requirements.
• Ongoing legislative efforts reflect the rapid evolution of digital asset technology and markets.