PUBLISHED ON: June 9, 2022
Bipartisan crypto legislation titled “the Responsible Financial Innovation Act” was introduced Tuesday by Cynthia Lummis (R-WY) from the Senate Banking Committee and Kirsten Gillibrand (D-NY) from the Senate Agriculture Committee.
The bill addresses many thorny issues with regards to cryptocurrency regulation, such as delineations between CFTC and SEC jurisdictions, stablecoin collateralization requirements, and the treatment of digital assets for tax purposes. The goal of the bill is to generate more flexibility, innovation, consumer protection, and transparency while providing more certainty and clarity to the growing digital assets industry.
- U.S. Senator Cynthia Lummis (R-WY)
- U.S. Senator Kirsten Gillibrand (D-NY)
- Gary Gensler, Chairman SEC
- Rostin Behnam, Chief CFTC
- Dennis Kelleher, Co-Founder Better Markets and served on Biden’s transition team
The cryptocurrency industry has long asked for more regulatory clarity, especially in terms of which projects fall under SEC jurisdiction as securities and those that are part of the CFTC’s jurisdiction as commodities. The SEC oversees all securities activity, with the exception of derivatives contracts that track commodities based on the old case law and the Howey Test. However, as this new technology has taken off, most tokens do not fall neatly into a security or commodity bucket, leading to many different interpretations and projects who want to stay in the U.S. spending a lot on compliance and legal resources and expenses. To date, the only tokens that have been effectively deemed commodities are bitcoin and arguably ether.
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