Two US Senators Release Sweeping Crypto Regulatory Bill amid Roiling Market Conditions

UTC by Tolu Ajiboye · 3 min read
Two US Senators Release Sweeping Crypto Regulatory Bill amid Roiling Market Conditions
Photo: Wikimedia Commons

A duo of US Federal lawmakers has proposed the first comprehensive draft of their eagerly-anticipated crypto bill meant to guide digital assets.

US pro-crypto Senatorial duo Kirsten Gillibrand (D-NY) and Cynthia Lummis (R-WY) have finally unveiled their proposed crypto bill titled the Responsible Financial Innovation Act.

On Tuesday, the wide-ranging legislative proposal meant to regulate an equally wide range of digital assets saw the light of day. This comes amid a tumultuous time for the crypto marketplace, which saw LUNA and UST crash.

The bipartisan US crypto bill outlines sweeping plans for future roles, such as favoring the Commodity Futures Trading Commission (CFTC) as a watchdog. In addition, the bill also urges digital asset firms to be more lucid in their approach policies so users can make informed decisions. Furthermore, the bill advocates for zero tax on all crypto-purchased goods and services less than $200 in value. In addition to all these, Gillibrand and Lummis’ bill also calls for an extensive study on crypto’s energy consumption.

The proposed crypto bill should serve as a regulatory overhaul and subsequent framework for crypto governance. In addition, it seeks to classify the most digital assets as commodities, like wheat, oil, or steel. Furthermore, the CFTC will maintain authority over these digital assets with total empowerment to do so. This differs from the widely-thought idea that regulatory oversight authority should rest with the Securities and Exchange Commission (SEC).

Reaction-trail to US Crypto Bill Release

Anticipation of the Responsible Financial Innovation Act is riding high due to several independent reasons. These include investors’ interest in a well-mapped out crypto regulatory blueprint, and Lummis’ perceived pro-Bitcoin stance. Colloquially dubbed Bitcoin’s favorite senator, Wyoming Republican Lummis has made many appearances at crypto festivals across the United States. In addition, within the past year, the US senator also featured in a series of media appearances. In most of them, she teased the content of her crypto regulation plan. Lummis explained in a press release:

“My home state of Wyoming has gone to great lengths to lead the nation in digital asset regulation, and I want to bring that success to the federal level.”

The senator also added that Congress must craft legislation that encourages innovation and also protects consumers against exploitation.

Commenting on the Responsible Financial Innovation Act, Miles Jennings, crypto general counsel and head of decentralization at Andreessen Horowitz said:

“This is the starting point for discussions about what the law should look like, I think that is one of the reasons we’re excited about it.”

Gillibrand and Lummis came together to work on the crypto bill back in March. Regardless, it remains unclear whether the proposed crypto bill will scale through Congress. Lummis, a staunch conservative and Donald Trump ally, may find it difficult to secure Democratic backing for the bill. Either way, many stakeholders believe that comprehensive crypto regulation is long overdue.

Cryptocurrency news, Market News, News
Tolu Ajiboye
Author Tolu Ajiboye

Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge. When he's not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.

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