Two senators from the United States are developing a bipartisan, broad-based regulatory framework for bitcoin. “The work we’re undertaking is going to be quite sophisticated and exhaustive in its examination of the various facets of this sector,” one of the senators explained.
Senators in the United States to Introduce Comprehensive Framework to Regulate the Cryptocurrency Industry
Senators Kirsten Gillibrand (D-New York) and Cynthia Lummis (R-Wyo.) are collaborating on a “broad-based regulatory framework” for the cryptocurrency business, they explained Thursday during a Politico Live event.
Senator Gillibrand said it this way:
The work we’re doing is going to be a very complex and intensive review of the different aspects of this industry.
“Some will be regulated by the CFTC [Commodity Futures Trading Commission], while others will be regulated by the SEC [Securities and Exchange Commission], while others will require a more broad examination, and we intend to establish a regulatory commission capable of examining these first-impression issues and issuing judgments and guidance,” she added.
The two senators are in discussions with stakeholders, regulators, and industry experts “to ensure that all voices are heard during this legislative process,” Gillibrand emphasized.
Senator Lummis was questioned about the CFTC’s expanded position under the new crypto framework. She responded as follows:
The answer is definitely yes. When you look at bitcoin and Ethereum in particular, it’s pretty clear to me that those are commodities.
Because the CFTC will play a critical role in regulating cryptocurrency, Lummis said, “it’s fantastic to work with Senator Gillibrand on this because she is on the Agriculture committee, which has jurisdiction over the CFTC.” “The SEC will also play a significant role in this space,” she added.
However, the pro-bitcoin Wyoming senator stressed that with over 18,000 cryptocurrencies now in existence, not all of them are commodities. “As a result, we’ll continue to use the 1940s Howey Test, which helps define what constitutes a security and what constitutes a commodity.”
She added that stablecoins and central bank digital currencies (CBDCs) will also be addressed “to a lesser extent” in the bill.
Senator Gillibrand stated, “Many of Senator Lummis’s and my aims are same. We wish to discuss issues such as safety and soundness. We’d want to talk about consumer protection. We aim to address market certainty.”
Senator Gillibrand stated that she and Senator Lummis will continue to work on the bill “over the next several weeks” and that it has a possibility of being enacted this year.
We want to continue to listen to stakeholders to make sure that we can at least foresee as many of the challenges that this regulatory framework might have.
Noting that the process thus far has been “very constructive and beneficial,” the senator from New York remarked, “I believe we will introduce it in the next few weeks and hope to have a vote by the end of the year.”
“While this bill is likely to be submitted in one piece, it may potentially be divided up into five or six pieces to address certain topics,” Senator Lummis noted, noting that the law covers a broad variety of issues, including banking, consumer protection, privacy, definitions, and taxation. Finally, she stated:
I’m really optimistic … We’re looking forward to rolling out a piece of legislation.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.
