The cryptocurrency industry is anxiously awaiting the introduction of the new crypto law, which Senators Gillibrand and Lummis co-authored.
- In mid-April, a revised version of the bipartisan crypto bill, co-authored by Senators, will be made available to the incoming Congress.
- The proposed legislation intends to establish a legal framework for the cryptocurrency market and give numerous crypto ventures regulatory clarity.
Announcement
A revised draft of the bipartisan crypto legislation, which Senators Cynthia Lummis and Kirsten Gillibrand of the United States co-authored, will be presented to the new Congress in mid-April, according to Senator Gillibrand. The proposed legislation intends to establish a legal framework for the cryptocurrency business, which will also give many crypto projects regulatory certainty. The bill also aims to establish whether they come under the Securities and Exchange Commission’s (SEC) or the Commodities Futures Trading Commission’s (CFTC) jurisdiction (CFTC).
On March 8, Senator Gillibrand queried CFTC Chair Rostin Behnam about the cryptocurrency legislation she had previously crafted with Senator Lummis during a Senate Agricultural Committee hearing on CFTC oversight. Mid-April will see the release of the bill’s newest draft, according to Gillibrand.
Regulating the Crypto Industry
According to Senator Gillibrand, the proposed legislation aims to spark a national dialogue about a comprehensive strategy for handling digital assets. This would include the SEC regulating digital assets with the characteristics of securities while the CFTC regulates digital assets with the features of commodities. It would also contain tax rules for the entire industry and regulation of stablecoins by the Office of the Comptroller of the Currency (OCC).
CFTC Chair’s Opinion on the Crypto Bill
According to CFTC Chair Rostin Behnam, in the most recent draft of the crypto law, Gillibrand and Lummis have carefully considered all market elements. He especially mentioned possible issues with cybersecurity and stablecoins. Following introduction of the Lummis-Gillibrand law in March 2022, the cryptocurrency market had a significant upheaval that saw companies collapse, including FTX, Voyager Digital, BlockFi, Terra, and others.
In light of cybersecurity, vendor risk, and third-party service providers, Behnam said that several issues need to be raised concerning digital assets. He continued that a premium should be placed on asset segregation, customer conflicts of interest, and making sure that those conflicts are carefully walled off, given what happened with FTX.
Bipartisan Work and Uncertainty
It is unclear whether the new Congress would advance the crypto bill, even though it continues to be a bipartisan effort between the Democratic Gillibrand and the Republican Lummis. Lummis said the bill was “a lot for them to swallow” for many lawmakers in July. The measure would undoubtedly offer many cryptocurrency projects the much-needed legislative clarification they need if it were approved by the Senate and House and signed into law. This covers the assets that would be governed by the SEC and CFTC.
Conclusion
In April, a revised version of the Lummis-Gillibrand crypto bill is anticipated. The proposed legislation intends to establish a legal framework for the cryptocurrency market and give numerous crypto ventures regulatory clarity. It would also show whether they fell within the SEC’s or the CFTC’s jurisdiction. The bill’s future in the new Congress is still being determined, but if it were to succeed, it would provide the cryptocurrency industry the much-needed legislative clarity it needs.
