This is the first major bipartisan attempt to create a comprehensive regulatory framework for digital assets in the US. If signed into law, the bill would not only define many confusing terms and battles over jurisdiction, but would recognize digital assets, including cryptocurrencies, as a legitimate part of the financial system. This requires regulators to study and clarify their positions on various issues.
“The Responsible Financial Innovation Act creates regulatory clarity for agencies tasked with overseeing digital asset markets, provides a robust and tailored regulatory framework for stablecoins, and integrates digital assets into our existing tax and banking laws,” said Senator Lummis in a statement.
How is the United States law to regulate cryptocurrencies
Specifically, the 70-page document contains provisions aimed at resolving territorial disputes between the Commodity Futures Trading Commission (CFTC) and the US Securities and Exchange Commission. (SEC). This would be achieved by assigning regulatory authority over spot markets for digital assets that are not considered securities to the CFTC.
The move would give the derivatives regulator more power in areas where SEC Chairman Gary Gensler has claimed his agency should take the lead and formally introduces the term “digital assets” into the SEC’s Commodity Exchange Act. CFTC passed in 1936.
In addition, the project includes new requirements for cryptocurrency exchanges, and for their uses for the payment of goods and services. Assets arising from mining would also be excluded from paying taxes, until they are sold.
Following the collapse of the $60 billion TerraUSD/Luna stablecoin ecosystem, the new bill also aims to establish basic principles for banks and non-banks that issue stablecoins, digital tokens pegged to some external asset such as the US dollar or gold. In particular, the law would require a 100% reserve for stablecoin issuers.
Lawmakers and other officials, including Treasury Secretary Janet Yellen, have stepped up calls for more regulation of stablecoins since the collapse of TerraUSD, which exacerbated a weeks-long selloff in the cryptocurrency market.
However, cryptocurrency traders oppose the regulation and are lobbying for it not to go forward.
Source: Ambito
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