news US bill to regulate cryptocurrencies has now been unveiled and to be submitted for deliberations

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Some countries have already been making huge strides in accommodating crypto by providing havens for facilities, passing laws in favor of crypto, and even accepting it as legal tender. Not to be outdone, the US under the Biden administration have been looking into crypto's benefits and risks to its economy for some time now, to be able to propose laws to suit the majority of concerned crypto enthusiasts and detractors (link).

 

Now two US senators, Republican Senator Cynthia Lummis and Democratic Senator Kirsten Gillibrand, have most recently unveiled their latest bill for crypto. These are the main points of the bill, from what I can glean in the news article:

• The bill will stipulate rules and regulations for consumer protection
• There will be clarification and certainty to be provided to crypto markets
• Oversight of the bill, once passed into law, will be given to the Commodity Futures Trading Commission (CFTC)

For consumer protection, the ability to use the law to sue fraudsters and money launderers is pretty much a given. About certainty to crypto markets, public disclosures of stablecoins (whether they are really pegged to certain currencies or not) may become needed, especially after what happened with TerraUSD last month. And CFTC is being seen as the better overseer of the proposed law, as it is believed to be less strict than the Securities and Exchange Commission (SEC).

 

There may be a delay in the deliberations on the bill due to the upcoming midterm elections, but it is expected to be paid close attention shortly after.

 

The news article link is here.

Spoiler

U.S. senators unveil bill to regulate cryptocurrency

By Pete Schroeder

 

WASHINGTON (Reuters) - A bipartisan pair of U.S. senators unveiled a bill on Tuesday that would establish new rules for cryptocurrency, and hand the bulk of their oversight to the Commodity Futures Trading Commission (CFTC).

 

The bill, introduced by Republican Senator Cynthia Lummis, one of Congress’ most vocal cryptocurrency advocates, and Democratic Senator Kirsten Gillibrand, marks one of the most ambitious efforts yet by lawmakers to place clear guard rails around rapidly growing and controversial cryptocurrency markets.

 

The measure would stipulate that the CFTC, not the Securities and Exchange Commission, play the primary role in regulating crypto products, most of which the senators said operate more like commodities than securities. The smaller CFTC is generally seen as a friendlier regulator for cryptocurrency, as the SEC has typically found that crypto products must adhere to a host of securities requirements.

 

The bill is not expected to become law in the current session of Congress, with the midterm elections just months away, but its framework could serve as a starting point for future debates about how best to oversee those markets.

 

“We expect this bill will be the starting point for debate next year regardless of which party controls the House or the Senate,” wrote Jaret Seiberg, an analyst with Cowen Washington Research Group. “What does matter is that there is a bipartisan effort to bring crypto into the existing regulatory regime even if the details are likely to change.”

The senators said the bill is aimed at providing certainty and clarity to crypto markets, alongside consumer protections.

 

Among other items, the bill would establish new rules for “stablecoins,” which are tokens intended to have their value pegged to a traditional asset like the U.S. dollar. Those products have been under significant pressure lately after a crash in the value of a high-profile stablecoin, TerraUSD.

 

The new bill would require stablecoin issuers to maintain high-quality liquid assets equal to the value of all outstanding stablecoins, and public disclosures of those holdings.

source: https://www.reuters.com/article/usa-senate-crypto-currency/u-s-senators-unveil-bill-to-regulate-cryptocurrency-idUSL1N2XU1LD

Edited June 8 by kyoukage01