Digital Assets Regulation: Senator Gillibrand Urges Democratic Colleagues to Rally Behind It

Senator Gillibrand Pushes for Bipartisan Cryptocurrency Regulation

Senator Kirsten Gillibrand is engaging in discussions with her fellow Democrat colleagues in the Senate to garner support for cryptocurrency regulation. She believes that a bipartisan approach is necessary to address the uncertainties surrounding digital assets and protect investors. Speaking at the Mainnet Conference, Gillibrand expressed optimism that through open dialogue and sharing ideas, the bill can gain bipartisan support.

Senate Banking Committee’s Role

Gillibrand recognizes the significance of the Senate Banking Committee in shaping cryptocurrency legislation. She aims to collaborate with other crypto skeptics, such as Senator Elizabeth Warren and Senator Sherrod Brown, to advance the bill and secure a vote before the end of this Congress.

Gillibrand and Lummis’ Joint Effort

While comprehensive digital asset regulation in the US may seem unlikely, Senator Cynthia Lummis and Gillibrand have introduced a new crypto bill that serves as a blueprint for regulation. The Responsible Financial Innovation Act proposes assigning most crypto assets as commodities under the jurisdiction of the Commodity Futures Trading Commission (CFTC), reducing the role of the Securities and Exchange Commission (SEC).

The State of the US Crypto Industry

The US crypto market remains uncertain due to regulatory challenges from both the SEC and CFTC. While Congress has yet to pass comprehensive regulations, both agencies have taken legal action against platforms like Coinbase and Binance for allegedly offering unregistered securities. This regulatory ambiguity has led to concerns about businesses relocating to countries with clearer rules.

Hot Take: Ripple and Grayscale Wins Bring Hope

The recent victories of Ripple and Grayscale in their legal battles against the SEC have provided optimism for the future of the US crypto industry. These wins demonstrate that clarity can be achieved through the courts, potentially paving the way for a more regulated and stable environment.