U.S. Senators Unveil The Much Awaited Crypto Regulation Bill
Two United States Senators, Cynthia Lummis and Kirsten Gillibrand, announced the release of the much-talked-about cryptocurrency bill. The new regulations contain a strategy for comprehensive guidelines for the crypto industry in the U.S.
A New Phase for Crypto Regulation
Accordingly, the bill will free small-scale transactions of goods and services from the shackles of taxes. Essentially, transactions of less than $200 are exempt from taxes.
Interestingly, this will make it possible for cryptocurrency to act as currency in transactions of goods and services in the U.S. The new deal would give the Community Futures Trading Commission (CFTC) powers.
The new regulation would remove the rest of the uncertainties keeping the digital financial industry from progressing.
However, it appears that the efforts of Senators Lummis and Gillibrand were limited to Washington at the beginning. The bill would trigger a dialogue that won’t bring any significant change even next year.
Previous bills like this have been made to regulate the crypto industry, but all manage to touch just a piece of the digital asset landscape. Before the latest statement, Senator Pat Toomey pushed for regulations on stablecoins.
Moreover, there is some argument that the new bill might be split into several parts next year, making its way through congressional committees.
Meanwhile, Senator Lummis is one of the committee members overseeing the banking sector and the Securities and Exchange Commission. Gillibrand is a member of the Agriculture Committee, overseeing the activities of the CFTC.
It is worth noting that both lawmakers are in a position to push the critical part of the new bill, unlike others before them.
Financial Act for Regulatory Clarity
To further shed more light on the way to achieve regulatory clarity for the crypto industry, the Responsible Financial Innovation Act was established. This act is to provide guidelines for agencies managing the digital asset space.
Additionally, it aims to provide a robust regulatory framework for the issuance and supply of stablecoins. Likewise, Lummis noted that it is to supervise the existing tax and banking regulations in the United States.
According to Gillibrand, the new bill is a landmark guideline for ensuring clarity in terms of regulation and compliance. It will bring more flexibility to handle the increasing evolution of the virtual asset market.
In May, the draft version of the new proposed bill highlighted some critical areas it would touch on, while the latest version has some modified features of the earlier version. However, Lummis and her team have been working on the bill since December 2021.
Furthermore, a crucial change has been made concerning which digital assets are under the jurisdiction of the CFTC. Meanwhile, Lummis teams up with Gillibrand to work toward the forthcoming regulations.
