- Senator Kirsten Gillibrand (D-NY) and Cynthia Lummis (R-WY) Bipartisan crypto bill Tuesday aims to give the space a comprehensive regulatory framework.
- The Responsible Financial Innovation Act touches on the regulatory requirements of stablecoin issuers and taxes on cryptocurrencies. It also makes it clear which digital assets will be commodities or securities.
- If the bill is passed, it will expand the role of the Commodity Futures Trading Commission (CFTC), which regulates the spot market for digital assets, and restrict the Securities and Exchange Commission (SEC) from overseeing the codes it classifies as securities. ..
Cryptographic surveillance has been the focus of lawmakers, regulatory agencies, and digital asset experts for months.
The Financial Accounting Standards Board (FASB) unanimously agreed in May. Advance Prioritize projects designed to improve accounting and disclosure of specific digital assets. Previous SEC Issued guidance Companies need to disclose risks to investors from their cryptocurrencies on behalf of their clients and account their assets as liabilities.
Some crypto executives Testimony at Capitol Hill in December He said the US approach to regulating space would determine the state’s position as a leader in this area.
CFTC Chair Rostin Venum Became a member of the Diet at a hearing in February Give the agency an expanded role When adjusting Cryptocurrency Enter the market and provide regulators with an additional $ 100 million.
Meanwhile, companies from Coinbase To Ripple Proposed its own preferred framework for cryptographic regulation — Ripple CFTCWhen Coinbase We are seeking the establishment of an entirely new regulatory agency.
Stablecoin Recent regulations Terra USD price collapse I made a headline in May.Treasury Secretary Janet Yellen The second half of the month Called for stricter stablecoin monitoring At a hearing at the Senate Banking Commission Lumis Serve
The Lumis and Gilibrand bills are intended to increase innovation and transparency while promoting consumer protection in the digital asset arena, Senator said Tuesday. Medium post..
The bill is also “Brings regulatory clarity to the agency responsible for overseeing the digital asset market and provides a strong and coordinated regulatory framework. Stablecoin, And integrate digital assets into existing tax and banking laws. ” Lumis Said in press release..
The bill requires stablecoin issuers to maintain 100% dollar reserves and the Treasury to implement final guidance on stablecoin within 120 days of the bill being passed. ..
The framework also eliminates the need for investors to pay capital gains taxes when using digital assets in transactions up to $ 200 and facilitates the use of crypto as a medium of exchange.
The bill also saves the money of crypto miners who don’t have to pay income tax until they exchange their newly mined assets for cash.
Perhaps the biggest impact of the bill is the government’s review of treating digital assets as securities or assets. The bill treats Bitcoin, Ethereum, and some other popular cryptocurrencies as commodities under the jurisdiction of the CFTC, rather than securities regulated by the SEC.
“Digital assets, blockchain technology and cryptocurrencies have grown tremendously over the last few years and, when used correctly, can bring significant potential benefits,” said Gilibrand. Served as a member of the Senate Agricultural Committee CFTC.. “It is important for the United States to play a leading role in developing policies that regulate new financial products, while encouraging innovation and protecting consumers.”
Lumis When Gillibrand We plan to create a cryptographic regulatory framework dating back to March 2020. It is very unlikely that you will pass the Senate, especially prior to the November midterm elections, cThe invasive aide said. But it can spur conversations and compromises.
This isn’t the only bill trying to define regulations in cryptocurrencies. Senate Agricultural Commission leaders are also working on a framework that allows the CFTC to monitor non-securities digital assets. The Wall Street Journal report.