Senator Cynthia Lummis (R-WY) has shared details of the pro-crypto regulatory framework that she has been developing.
Bill To Regulate, Not Strangulate
Senator Lummis’s bill will focus on establishing a regulatory framework within which the crypto industry can function without choking it. She has also revealed that the bill should be introduced in the Senate before the end of the year. According to Sen. Lummis, the bill is seeking to include cryptocurrencies under traditional asset categories.
Speaking on the bill in an interview, she said,
“We’ve designed it so it works within the customary framework for managing and regulating traditional assets. So, for example, Bitcoin is a commodity. So it would fall under the Commodity Futures Trading Commission for purposes of trading and the spot market and the futures market. And then when something fits in the Howey Test, that makes it a security, it would fall under the Securities Exchange Commission.”
Protecting Users And Innovation
Sen. Lummis has long been a pro-crypto voice among US lawmakers. She has not only spoken out in favor of crypto on multiple occasions in the Senate but has also invested heavily in Bitcoin. Back in August 2021, when the price of BTC was around $45,000, the Senator had bought between $50,000 to $100,000 worth of BTCs.
She has stated that the industry needs a regulatory framework that would protect the interests of clients and users, without obstructing innovation. Furthermore, she has clarified that the bill will cover legislation for multiple components of crypto assets and commodities, which will be distributed among various committees.
“We’re going to introduce it as one big piece so people can see the big picture, how the commodities components work, with the securities components, with the stable coins and with potential CBDC.”
Sen. Lummis also pointed out that Congress has failed to establish proper guidelines for cryptocurrencies and decentralized technologies, which has led to confusion among regulatory authorities like the SEC. She has claimed that the bill will address this matter.
NFTs Need Categorization
The bill will not include non-fungible tokens (NFTs), mainly because of the challenges of categorization that they pose. However, she has stated that this is where regulatory agencies need to contribute their expertise and help understand how to categorize these digital assets. She pointed out that since some NFTs are sold simply as works of art, whereas some others function as utility tokens, the categorization is important in order for NFTs to be regulated.
Industry experts are hopeful due to the thoughtful nature of the bill and believe that it could act as the catalyst to kickstart similar initiatives in other countries.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.