A pair of U.S. senators unveiled a bill on Tuesday that sets new rules for cryptocurrencies.
A pair of U.S. senators unveiled a bill on Tuesday that sets new rules for cryptocurrencies and will hand over most of its oversight to the Commodity Futures Trading Commission (CFTC).
The bill, introduced by Republican Sen. Cynthia Lummis, one of the most vocal cryptocurrents in Congress, and Democratic Sen. Kirsten Gillibrand, is one of the legislators’ most ambitious efforts to establish clear protection. mark.
The measure would stipulate that the CFTC, rather than the Securities and Exchange Commission, has a key role in regulating cryptocurrencies, which most senators say are commodities rather than securities. The smaller CFTC is often considered a friendlier supervisor for cryptocurrencies because the SEC often finds that crypto products must meet many security requirements.
The bill is not expected to become law at the current session of Congress, with only a few months to go until the mid-term elections, but the structure could serve as a starting point for future debates on how best to manage markets. “We hope this bill is the starting point for next year’s debate, regardless of which party controls the House or Senate,” wrote Jaret Seiberg, an analyst at Cowen Washington Research Group. “Importantly, there has been an attempt by both parties to introduce cryptocurrencies into current regulations, although the details are likely to change.”
Senators said the bill aims to provide certainty and clarity to cryptocurrencies along with consumer protection.
Among other things, the bill sets new rules for “stablecoins,” which are tokens designed to place their value on a traditional asset such as the US dollar. These products have recently come under considerable pressure following the fall in the price of the highly profiled TerraUSD stablecoin.
The new law will require the issuer of stablecoins to maintain high quality liquid assets equal to the value of all outstanding stablecoins and the disclosure of these holdings.