Revamped Crypto Bill Aims to Classify Most Crypto Assets as Commodities
On July 12, Senators Cynthia Lummis and Kirsten Gillibrand will submit an amended crypto bill called the “Responsible Financial Innovation Act.” The goal of this bill is to classify most crypto assets as commodities, bringing them under the jurisdiction of the Commodities Futures Trading Commission (CFTC) instead of the Securities and Exchange Commission (SEC). The Senators argue that the SEC’s regulations are stifling innovation in the financial technology sector.
Key Points:
– The SEC wants to regulate crypto companies using outdated legislation meant for banks and stock exchanges.
– The proposed legislation aims to protect investors and prevent major industry collapses.
– The bill would require crypto exchanges to store customer funds in third-party trusts and prevent internal trading with their own funds or tokens.
– The CFTC would have the power to supervise exchange affiliates for potential misdemeanors.
– The legislation also prohibits the practice of financing digital assets already locked up in other loans.
Closing Paragraph – Hot Take:
The introduction of the revamped crypto bill is a step towards creating clearer regulations in the crypto industry. By classifying most crypto assets as commodities, the bill aims to promote innovation while still protecting investors. However, there are concerns that the bill may face obstacles before it can be passed. With the rest of the world already ahead in crypto regulations, it is crucial for the U.S. to catch up in order to avoid losing talent, innovation, and capital. Despite the potential positive impact of this bill, the current sentiment and volumes in the crypto market remain flat.
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