Senators Lummis and Gillibrand have proposed legislation in the context of the regulation of virtual currencies in the United States. In their statement, these two American senators, Cynthia Lummis and Kirsten Gillibrand affirmed that at least part of their bill could be adopted in the next six months.
Cryptocurrencies soon to be regulated in the USA
Kirsten Gillibrand and Cynthia Lummis are both US senators. Recently, these two political figures said that part of their proposed cryptocurrency regulation bill could enjoy approval by President Joe Biden and passage within the next six months by the legislature.
The part of their bill that would pass could give the Commodities Futures Trading Commission (CFTC) control over digital commodities like Bitcoin or the Ada cryptocurrency from the Cardano blockchainetc.
This bill entitled “Responsible Financial Innovation Act” is bipartisan. Indeed, it is the result of a collaboration between a Republican senator from Wyoming, Cynthia Lummis, and a Democratic senator from New York, Kirsten Gillibrand. In its consistency, this bill is the most comprehensive for cryptos to date.
Thus, the purpose of this legislation is to regulate the cryptocurrency market in a general framework. The other purpose of this bill is to effect the transfer of authority from the SEC to the CFTC.
Why the CFTC? Because she currently oversees commodity trading. Also, the CFTC already labels 34 crypto and Forex trading platforms as unregistered foreign entities.
The purpose of this political maneuver is to codify as well as decide whether digital assets are securities. It should also be added that stablecoins like the USDC are at the center of this bill.
Concretely, this bill requires all stablecoin issuers to guarantee the funds. Which would allow users to trade them at any time at a ratio of 1:1 with the US dollar.
Lummis and Gillibrand: A Bipartisan Coalition to Codify the Cryptocurrency Market
Lummis and Gillibrand introduced a bill that addresses the regulation of the digital asset industry. This bill is intended to be innovative in the field of crypto-currencies but also NFTs.
Indeed, despite the fact that as it stands, the bill has not been endorsed by President Joe Biden, it has already received endorsements from several other prominent political figures. This allows us to glimpse, moreover, a clearer and more serene future for effective legislation concerning crypto-assets.
Moreover, according to the two senators who proposed it, the bill will receive the majority of votes. This is because it includes concrete and realistic proposals on flexibility, transparency and consumer protection.
In summary, this bill will bring more clarity to the cryptocurrency market. A market that is growing and whose sudden collapse can create enormous economic damage to a great nation like the United States of America or to a political-economic organization like the European Union.