Australian Senate believes the government needs to do more research before introducing crypto legislation.
The Australian Senate Committee on Economics Legislation has recently made its stance clear on Senator Andrew Bragg's cryptocurrency bill, known as The Digital Assets (Market Regulation) Bill 2023.
According to the response shared on September 4th, the committee recommended that the Senate should not pass the bill, urging further government investigation into the matter.
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Senator Bragg initially proposed the bill in March of 2023, aiming to introduce stablecoins, cryptocurrency exchanges, and digital asset custody regulations.
The Senate committee, however, is not favoring the legislation as it currently stands. Instead, the committee advises continued research into digital assets and their potential impact on the Australian economy.
While the committee's mainline stance is one of caution, a dissenting report from Senators Bragg and Dean Smith advocates for more immediate action. They suggest minor amendments to the bill, like removing non-fungible tokens (NFTs) from the definition of regulated digital assets.
Furthermore, they recommend that certain asset-based tokens, possibly including the Gold and Silver Standard and BetaCarbon Token, be excluded from the stablecoin definition. The dissenting senators also proposed to extend the transition period for the new regulations from three to nine months.
The dissenting report takes a strong position on the importance of crypto regulation. Senators Bragg and Smith also recommended a review by the Board of Taxation concerning the tax implications of digital assets in Australia, aiming for legislative changes by early 2024.
Senators argue that the Australian government's current approach to digital asset regulation is doing more harm than good, stating:
The committee inquiry has demonstrated that the government’s approach to digital asset regulation is hurting Australian consumers and investment.
It is worth noting that the Senate committee was initially expected to release its report by August 2nd, but delays pushed it to August 16th, then to August 25th, and ultimately to September 4th.
The rejection of Senator Bragg's crypto bill by the Senate Committee on Economics Legislation signifies a cautionary approach by Australian lawmakers toward crypto regulation. With opposing views within the Senate itself, what could be the next course of action? Is Australia stepping back or gearing up for a more comprehensive digital asset framework? The road ahead seems uncertain.
