On July 12, an amended crypto bill will be introduced by Senators Cynthia Lummis and Kirsten Gillibrand.
The revamped “Responsible Financial Innovation Act” aims to classify most crypto assets as commodities, similar to gold.
This would put them under the umbrella of the Commodity Futures Trading Commission (CFTC) instead of the Securities and Exchange Commission, which is “stifling innovation in financial technologies,” according to the senators.
Crypto Bill Reduction
The SEC wants to enforce 90-year-old legislation to regulate and treat crypto companies the same as banks and stock exchanges.
“Domestic industries are really trying to comply, for the most part, and they’re just being ignored,” Lummis said, adding, “This is not how we regulate in this country,” according to Wired.
The newly proposed legislation is intended to protect investors and prevent the major crashes that crippled the industry in 2022. However, it does not advocate enforcement actions, lawsuits, or the exchange asset freeze demand to harm investors (which is what the SEC has been doing). ).
The report, citing a person with knowledge of the act, explains that the new bill, if passed, would require cryptocurrency exchanges to store customer funds in third-party trusts. It would also prevent internal trading from exchanges that use their own funds or tokens.
In addition, the CFTC would also have the power to monitor exchange affiliates for potential misdemeanors.
The law also prohibits “remortgaging,” which is a practice of financing digital assets that are already locked up in other loans.
The legislation has already been passed to the CFTC and SEC for their purview, but Lummis is concerned that it will be stalled.
“After all our efforts to reach them and work with them, I don’t want them coming in at the last minute to end this.”
The United States is already far behind the rest of the world regarding crypto regulations. As a result, an exodus of talent, innovation and capital is already underway.
Crypto Market Insights
While crypto markets would be boosted by progressive legislations in the US, sentiment and volumes are currently flat.
Total capitalization is holding steady on the day at $1.23 trillion, with very little movement from large-cap coins in the past 24 hours.
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This post Senators Lummis and Gillibrand to Introduce an Updated Bill Classifying Crypto Assets as Commodities
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