06.10.202111:40 Forex Analysis & Reviews: Patrick McHenry wants to make it easier for crypto startups to raise funds in the US. Brazil follows the path of El Salvador

Republican Leader Patrick McHenry expressed his desire to make it easier for crypto startups to raise funds without violating the US securities law. He proposed a bill called "Safe Harbor" on Tuesday, ahead of the SEC hearing, where Chairman Gary Gensler is expected to speak.

"The "Clarity for Digital Tokens Act of 2021" will effectively codify the proposal by SEC Commissioner Hester Pierce for a safe haven for tokens, "McHenry said.

This is a rather serious support from the politician, since the implementation of such an idea will open many doors for crypto startups, which will then entail the creation and sale of new tokens to finance their goals. And most importantly, all this can be done without fear that at any moment the SEC may step in and equate tokens with shares or other types of assets that should be subject to regulation. McHenry has long been proposing a number of crypto-friendly bills and has called on federal agencies to create a working group to fully define the rules of cryptography.

Regarding the proposal by Hester Pierce, new companies and startups will have three years to either register with the securities regulator and take control, or fulfill a number of requirements to prove that they are completely decentralized. McHenry's proposed bill echoes Peirce's principles regarding when startups will have to register or how they can verify that their projects no longer meet the federal definition of "security."

McHenry notes that the current regulatory framework threatens to push crypto and the jobs created by it overseas, so he is proposing a bill that will help provide necessary legal certainty for digital asset projects.

On a different note, local reports say Brazil is planning to follow El Salvador in accepting Bitcoin as one of the means of payment within the country. Federal Deputy Aureo Ribeiro said the citizens may soon be able to buy houses, cars and even fast food using the cryptocurrency.

The comment was made immediately after the approval of the "Bitcoin Law", which was considered in a plenary session of the Chamber of Deputies. Ribeiro said that by design, this law could be a reference for other countries wishing to regulate digital assets.

Because of this, Bitcoin hit $50,000, however, there was no major profit taking. In any case, a break through this level will lead to a further jump to $ 50,900 and $ 54,444, while a drop below will result in a plunge to $ 47,260, and then to $ 43,333 and $ 40,600.