Around the Regulators around the world are trying to tackle the trillion-dollar elephant in the room: the digital asset market. Because crypto is a burgeoning industry that currently exists largely outside of the legal framework, it’s still in murky waters, and those in the industry – and outside – seem to want clear guidelines and clarity to move forward.
A Proposed Crypto Bill, Sponsored by US Senators Cynthia Lummis, Republican from Wyoming, and Kirsten Gillibrand, Democrat from New York, aims to install guard rails around the digital asset space. That 69-page bipartisan bill is comprehensive and addresses many corners of the crypto markets.
The most notable aspects of the proposal include:
“This bill tries to do everything that could be its biggest obstacle.” Christopher LaVigne, Co-Chair of Crypto Practice, Withers
- Make crypto transactions of $200 or less tax-free.
- Define policies to distinguish cryptocurrencies as commodities or securities (most would fall under the commodities category under the bill).
- support stablecoins with a 1:1 monetary currency moving towards “100% reserve, asset type and detailed disclosure requirements for all payment stablecoin issuers.”
- Grant the US Commodity Futures Trading Commission exclusive jurisdiction over the spot market for cryptocurrencies defined as commodities.
- Designated by the US Securities and Exchange Commission and the CFTC as the primary watchdogs over the digital asset industry.
“The bill is important as it is a step in the right direction for legislation and definition of ‘crypto’, what a ‘crypto asset’ is and what regulation will look like.” Nick Donarskythe founder and CTO of ORE systemsaid TechCrunch.
“But at the same time, the bill, like other crypto-related bills, would be 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 exciting,” Ken GoodwinDirector of Regulatory and Institutional Affairs Blockchain Intelligence Groupsaid TechCrunch. By granting the CFTC oversight of most digital assets, it sets a precedent and gives the agency more validation, he said.
Goodwin has been on Wall Street for over 20 years and has spent the last eight years in the blockchain space. Despite his background in both traditional finance and crypto, he said he was surprised by the CFTC’s positioning in the proposed legislation.
“I would never guess that [CFTC] actually being at the forefront; I thought the SEC was the regulator for that,” Goodwin said. “Even if this law doesn’t pass, people will look to the CFTC for guidance.”
Proposed bipartisan US crypto bill could be ‘sigh of relief’ for the industry – TechCrunch Source link Proposed bipartisan US crypto bill could be ‘sigh of relief’ for the industry – TechCrunch