WASHINGTON — Tuesday’s most comprehensive cryptocurrency legislation is being presented by a bipartisan pair. They are trying to create a federal regulatory structure for digital assets.
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Lummis, who is a passionate cryptocurrency supporter on Capitol Hill and owns bitcoin, stated in an interview that “one of the problems is not that nothing is properly described.” “Our bill seeks change that so more people can become comfortable with cryptocurrency and can also benefit from it,” Lummis, a passionate cryptocurrency supporter on Capitol Hill, said in an interview.
The legislation will define blockchain and digital asset industries for the first-ever time and designate the Commodity Futures Trading Commission to be the regulatory agency with spot market jurisdiction over any fungible digital assets not classified as securities.
In recent years, the Securities and Exchange Commission and Commodity Futures Trading Commission have clashed over which agency should regulate digital assets and cryptocurrencies.
This legislation would define digital assets, virtual currencies and payment stablecoins, as well as detail new tax implications for crypto users.
“The bill’s scope is impressive and shows that senators have engaged in dialogue with the crypto community in order to understand the pain points within the industry where regulation intersects with innovation,” Agnes Gambill, visiting senior researcher at George Mason University’s Mercatus Center for decentralized finance, said.
“The industry needs to be regulated in order to protect consumers against fraud. Gambill stated that we must be careful not to stop innovation.
Janet Yellen, Treasury Secretary, called for “new regulation” in the cryptocurrency industry after increasing fraud and scams affecting consumers of cryptocurrencies. This was at a House hearing last week. President Joe Biden signed an executive directive in March that strengthened consumer protections and provided funding for research on digital assets.
Gillibrand stated that digital assets, such as blockchain technology and cryptocurrency, have seen a tremendous rise in the last few years and can offer significant potential benefits if used correctly. It is crucial that the United States plays a leading role when developing policies to regulate financial products. This will encourage innovation and protect consumers.
A poll by NBC News from March found that 21 percent of Americans have used or traded cryptocurrencies, up from 10 per cent the year before.
