Proposed bipartisan US cryptocurrency law could be a ‘sigh of relief’ for the industry

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All around Around the world, regulators are trying to solve the problem of the trillion elephant in the room: the digital asset market. Since cryptocurrency is a nascent industry that currently exists largely outside the legal framework, it is still in murky waters, and those in the industry – and beyond – seem to want clear guidelines and clarity. to move forward.

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Proposed Cryptocurrency Bill, sponsored U.S. Senators Cynthia Lummis, a Wyoming Republican, and Kirsten Gillibrand, a New York Democrat, are aiming to establish a guide rail around the digital asset space. 69-page bipartisan bill is comprehensive and covers many aspects of the crypto markets.

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Some of the more notable aspects of the proposal include:

“This bill is trying to do everything that could be its biggest hurdle.” Christopher LaVigne, Co-Chair of Cryptopractice, Withers

  • Cryptocurrency transactions of $200 or less are tax-free.
  • Establish guidelines for differentiating cryptocurrencies as commodities or securities (according to the bill, most of them fall under the category of commodities).
  • Support stablecoins with 1:1 currency, moving to “100% reserve, asset type, and detailed disclosure requirements for all payment stablecoin issuers.”
  • Granting the US Commodity Futures Trading Commission exclusive jurisdiction in the spot market over cryptocurrencies defined as commodities.
  • Designate the US Securities and Exchange Commission and the CFTC as prime watchdogs for the digital asset industry.

“The bill matters as it is a step in the right direction for legislation and the definition of ‘crypto’, what is a ‘cryptoasset’ and what regulation will look like,” Nick Donarskyfounder and technical director Throttle system— told TechCrunch.

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“But at the same time, the bill, like other cryptocurrency-related bills, is more likely to be split in order to get enough support to pass it.”

Giving power to the CFTC

“There’s a lot of color here and it’s quite interesting” Ken GoodwinDirector of Regulatory and Institutional Affairs in Blockchain analytics, — told TechCrunch. Giving the CFTC oversight of most digital assets sets a precedent and gives the agency more power, he said.

Goodwin has worked on Wall Street for over 20 years and spent the last eight years in the blockchain space. Even with a background in both traditional finance and crypto, he said he was surprised by the CFTC’s stance on the proposed bill.

“I would never suspect [CFTC] to actually be at the forefront of it; I thought the SEC would be the regulator,” Goodwin said. “Even if this bill doesn’t pass, people will look to the CFTC for advice.”


Credit: techcrunch.com /

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