Last year’s U.S. crypto legislation from Sens. Cynthia Lummis and Kirsten Gillibrand is being re-launched with changes that would reduce the role of the SEC. The bill proposes that crypto exchanges be overseen by the CFTC and that stablecoin issuers be regulated depository institutions. The legislation would establish a division between securities oversight and other assets, with assets that don’t represent debt or equity falling outside the SEC’s reach. The bill also addresses CFTC oversight, customer asset segregation, risk-management standards for crypto lending, and the regulation of stablecoins. Lummis and Gillibrand are seeking bipartisan support for the bill, but its fate remains uncertain. The SEC, meanwhile, has been aggressively enforcing securities laws against prominent crypto companies. The bill could potentially be divided into smaller pieces or absorbed into other bills.
Main breakdowns:
- The bill proposes less prominent role for the SEC in crypto oversight
- Crypto exchanges would be overseen by the CFTC
- All stablecoin issuers would be regulated depository institutions
- The bill establishes a division between securities oversight and other assets
- The bill addresses CFTC oversight, customer asset segregation, risk-management standards for crypto lending, and the regulation of stablecoins
Hot Take:
The re-launched crypto legislation from Sens. Cynthia Lummis and Kirsten Gillibrand represents a significant effort to establish comprehensive regulation for the industry. By proposing a reduced role for the SEC and giving oversight to the CFTC, the bill aims to create a clear division between securities and other assets. However, the fate of the bill is uncertain, as it will need bipartisan support in a politically divided Senate. In the meantime, the SEC continues to aggressively enforce securities laws against crypto companies. The industry eagerly awaits progress on this legislation and other bills that could shape the future of crypto regulation in the U.S.
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