Cryptocurrency

US Senators Introduce Bipartisan Cryptocurrency Regulation Bill

The long-awaited strategy from Senators Cynthia Lummis and Kristen Gillbrand sees plans for CFTC involvement and clear guidelines on taxation.

Cryptocurrency

US Senators Introduce Bipartisan Cryptocurrency Regulation Bill

The long-awaited strategy from Senators Cynthia Lummis and Kristen Gillbrand sees plans for CFTC involvement and clear guidelines on taxation.

On Tuesday, June 7, US Senator Cynthia Lummis announced a bipartisan cryptocurrency regulation bill in collaboration with Senator Kirsten Gillibrand. Key elements of the bill include the designation of the Commodities Futures Trading Commission (CFTC) as a regulatory watchdog and clear guidelines for the taxation of digital assets.

The 69-page bill outlines everything from establishing definitions in the space to guidelines surrounding the taxation of digital assets. To the satisfaction of many crypto-focused businesses and consumers, the bill states that transactions under $200 USD would be tax-free — allowing for more currency-like applications.

The bill is said to create a complete regulatory framework for digital assets that encourage financial innovation, flexibility, transparency, and consumer protections — while integrating digital assets into existing law. The bipartisan effort to provide certainty and clarity to the growing digital asset and blockchain industries set forth by the Lummis-Gillibrand bill marks one of the most substantial strategies to date.

Outlined in the bill, the CFTC would be assigned regulatory authority over digital asset spot markets. In recognition that most digital assets are much more similar to commodities than securities, the bill would give the CFTC clear authority over applicable digital assets like Bitcoin and Ethereum.

Coinbase applauds Senators Lummis and Gillibrand for their tireless efforts to introduce meaningful legislation to create regulatory clarity for digital assets. A bipartisan consensus is emerging that crypto can empower and enhance economic freedom for all Americans, and we look forward to continuing our work with them to pass much-needed new laws in this space,” said Kara Calvert, Head of US Policy, Coinbase, adding that “the stablecoin provisions of this legislation, in particular, are comprehensive and detailed, and promote both consumer protection and innovation.”

In response to the growing concern around stablecoins, the bill defines and creates requirements that will protect consumers and markets as well as promote faster payments. Payment stablecoins, like USDC and USDT are increasing in adoption and are believed to create a faster and more secure means of payment if structured appropriately. The Lummis-Gillibrand bill would see the establishment of a 100% reserve, asset type and detailed disclosure requirements for all payment stablecoin issuers. Allowing for holders to have a guaranteed means of redeeming the stablecoin in exchange for the equivalent dollar value. Additionally, the bill also outlines a detailed, optional framework for banks and credit unions to issue payment stablecoins.

In other news, a former OpenSea executive is the first to be charged with the insider trading of digital assets.

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