Brazilian Securities Watchdog Demands Changes to Cryptocurrency Bill

The Brazilian securities watchdog, CVM, now wants specific revisions to a cryptocurrency law in Congress. The association seeks to fix a loophole in the current document so tokenized physical products and carbon credits are deemed securities.

Brazilian CVM Wants Crypto Bill Changes

CVM wants modifications to the cryptocurrency bill to clarify how virtual assets would be regarded in Brazil. The new organization’s mandate takes an active posture, unlike the previous administration, which offered no bill recommendations.

The CVM wants to allow carbon credits, court orders, and receivables to be constructed in a blockchain but not qualify as virtual assets under the present cryptocurrency bill.

Proponents of the bill say there’s no way to include these new details. Deputy Expedito Netto, the bill’s rapporteur, said he didn’t know these specifics but couldn’t amend the text.

Senator Carlos Portinho thinks a new cryptocurrency bill is needed. said

The industry updated certain notions, so it started afresh. Participatory democracy is necessary. Such projects need to be debated for a more current text and legal clarity. Few will approve it as is.

Alternatives

These disagreements between the bill’s sponsors and the Brazilian CVM may make the bill unsalvageable. However, there is a chance that politicians’ time and work won’t be wasted.

This alternative envisions Congress approving the current measure and the executive vetoing some portions, modifying and defining by decree some of the disputed details.

The final bitcoin legislative discussion was scheduled for August, but Congress is focused on the October elections. September is the last month to discuss this proposal before elections.