US Senators Push for Comprehensive Crypto Regulation
In an attempt to prioritize crypto regulation amidst a potential government shutdown, Democratic Senator Kirsten Gillibrand of New York and Republican Senator Cynthia Lummis of Wyoming have joined forces to introduce the Responsible Financial Innovation Act of 2023. This bipartisan bill aims to classify most cryptocurrencies as commodities under the jurisdiction of the Commodity Futures Trading Commission (CFTC). It also mandates crypto exchanges to securely store customer assets in third-party trusts.
The Need for Clear Crypto Regulations
The proposed legislation comes in light of recent events such as the collapse of FTX exchange and ongoing uncertainty in government operations. Gillibrand remains committed to advancing crypto legislation and emphasizes the importance of bipartisan support. She has been actively engaging with Senate Banking Committee Chair Sherrod Brown to urge consideration of the stablecoin provision in her bill.
The Lummis-Gillibrand Act
Gillibrand is exploring various avenues to ensure the acceptance and implementation of the bill. This includes integrating elements into existing legislation and finding common ground on cannabis banking reforms. The goal is to establish a clear regulatory framework for digital assets and create a secure and trustworthy crypto environment.
Support for Comprehensive Consumer Protections
Senator Lummis acknowledges the significance of the bill, stating that it provides robust consumer protections and addresses the current landscape surrounding crypto assets. By placing most cryptocurrencies under the purview of the CFTC and requiring secure storage of customer assets, this legislation aims to prevent potential investor losses.
Hot Take: Advancing Crypto Integration
Despite the possibility of a government shutdown, Gillibrand’s collaborative efforts with Lummis represent an important step toward integrating digital assets into the mainstream financial system. By pushing for comprehensive crypto regulation, they aim to bring clarity and consumer protections to the rapidly evolving crypto industry.
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