Lummis and Gilibrand: Parts of Crypto Bill Could Pass in 6 Months

Lummis and Gilibrand: Parts of Crypto Bill Could Pass in 6 Months

Senators Kirsten Gilibrand and Cynthia Lummis have said that part of their signature cryptocurrency regulation bill could pass in the next six months. Parts of the bill that would give the Commodities Futures Trading Commission (CFTC) control over digital commodities such as Bitcoin could be one of the first parts of the bill to pass.

According to reports by The Block, components of the cryptocurrency regulation bill authored by Senators Gilibrand and Lummis could be approved by President Joe Biden within the next six months. Lummis said, “I think six months from now we actually will see the least part of it on the president’s desk.” The bill was first introduced in June and a section of it that would give the CFTC authority over digital assets is “ready” to move forward according to Senator Gilibrand. The authors said that the section of the bill that deals with stablecoins is set to “go next” in Congress.

The bill entitled the “Responsible Financial Innovation Act” is bipartisan with, Lummis a Republican from Wyoming, and Gilibrand, a Democrat from New York. It contains the most comprehensive legislation for crypto to date and aims to regulate the market as a whole. Its main purpose is to pass the SEC authority over to the CFTC, which currently oversees commodities trading. A summary of the bill says it:

Grants the CFTC exclusive spot market jurisdiction over all fungible digital assets which are not securities, including ancillary assets.

Also included in the bill is a definition of the Howey test which seeks to codify and clarify whether cryptos are securities, which Chairman of the SEC, Gary Gensler argues, most crypto projects are. Another key area the bill entertains is stablecoins. The bill asks that all stablecoin issuers have 100% backing and that their coins can be exchanged on a 1:1 ratio with the U.S. dollar at any given time.

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.

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