Proposed bipartisan US cryptocurrency bill could be a “sigh of relief” for industry – TechCrunch

All around world, regulators are trying to address the trillion-dollar elephant in space: the market for digital assets. Because crypto is a nascent industry that currently exists largely outside the legal framework, it is still in murky waters, and those in the industry – and outside it – will apparently have clear guidelines and clarity to move forward.

A proposed cryptocurrency bill, sponsored by U.S. Senators Cynthia Lummis, the Republican from Wyoming, and Kirsten Gillibrand, the Democrat in New York, aims to install guide rails around the digital asset space. The 69-page two-part bill is comprehensive and addresses many corners of the crypto markets.

Some of the most notable aspects of the proposal include:

• Make crypto transactions that are $ 200 or less tax free.
• Define guidelines for separating cryptocurrencies as commodities or securities (most will fall under the commodity category, according to the bill).
• Support stablecoins with a 1: 1 monetary currency, moves towards “100% reserve, asset type and detailed disclosure requirements for all payment stablecoin issuers.”
• Give the US Commodity Futures Trading Commission exclusive spot market jurisdiction over cryptocurrencies defined as commodities.
• Highlights the US Securities and Exchange Commission and the CFTC as the most important watchdogs of the digital asset industry.

“The bill is important as it is a step in the right direction for legislation and the definition of ‘crypto’, what a ‘crypto asset’ is and what regulation will look like,” Nick Donarski, founder and CTO of ORE System, told TechCrunch .

“But at the same time, the bill, like other crypto-related bills, will be more likely to be split to get enough support to get it passed.”

Give power to the CFTC

“There’s a lot of color here, and it’s quite exciting,” Ken Goodwin, director of regulatory and institutional affairs at Blockchain Intelligence Group, told TechCrunch. By overseeing most digital assets, the CFTC sets a precedent and gives the agency more validation, he said.

Goodwin has worked on Wall Street for over 20 years and has spent the last eight years in the blockchain area. Even with his background in both traditional finance and crypto, he said he is surprised by the placement of the CFTC in the proposed bill.

“I would never suspect [CFTC] actually be ahead of this; I thought the SEC would be the regulator for this, Goodwin said. “Even if this bill does not pass, people will look to the CFTC for guidance.”