June 7, 2024, the Crypto Regulation in the USA aims for a historic turning point: Senators Cynthia Lummis and Kirsten Gillibrand have finally published the draft bill to rewrite from scratch the federal rules on Bitcoin, stablecoin and DeFi.
No reform so comprehensive had ever been proposed before in the American Congress.
What does the new crypto regulation presented to the US Senate foresee?
The Responsible Financial Innovation Act presented on June 7, 2024, establishes a new federal regulatory framework for digital assets and operators, with regulatory clarity that has been requested for years by the US crypto sector. The central elements of the text include:
- Mandatory federal registration for exchange, stablecoin issuer, and intermediaries
- New legal categories for digital assets: digital commodities (like Bitcoin) supervised by the CFTC; security tokens, under SEC control
- Precise definition of the criteria that distinguish commodity, security, and stablecoin
- Strengthened transparency requirements and consumer protection
This scheme aims to overcome the current regulatory jungle dominated by divergent interpretations among SEC, CFTC, and individual states. Bitcoin and the main “digital commodities” would finally be protected by a unified framework, according to the senators’ proposal.
The new crypto regulation marks an unprecedented approach.
The US Parliament establishes the federal perimeter of the sector, assigning a leading role to the CFTC (Commodity Futures Trading Commission) for everything that is not a security according to traditional tests.
The SEC would retain competence only over tokens with clear financial security attributes. This means that, for the first time, assets like Bitcoin, Ether, and many stablecoins would have a certain federal regulatory status.
Managers of exchange platforms, wallets, and infrastructures would be covered by common rules, reducing the risk of sanctions and “surprise” actions by state or federal regulators.
Under the new bill, the key distinction is this:
- Digital commodities: (Bitcoin, Ether, similar tokens for decentralization and use) supervised by the CFTC
- Securities token: often associated with ICO, they adopt SEC protections as in the stock market
This sharp cut contrasts with the current scenario, where the SEC has initiated sensational lawsuits against Coinbase and Ripple, creating chronic uncertainty. Now, the oversight would be clear, with homogeneous compliance standards.
What rules for stablecoin and exchange?
The text addresses the hot topic of stablecoin and exchange operators, two fundamental nodes for the USA’s competitiveness in the crypto world:
- The issuance of stablecoin would be allowed only to entities registered at the federal level, with minimum reserve requirements and audits
- Exchanges should adopt KYC (Know Your Customer) and AML (Anti Money Laundering) procedures in compliance with international standards
- Severe penalties are expected up to the revocation of the license for serious violations
Objective: increase transparency, prevent cases of fraud (see FTX collapse 2022), and protect retail clients and institutional investors.
The Responsible Financial Innovation Act was filed as a draft in the Senate on June 7, 2024. The key points of the parliamentary process include:
- Immediate public consultations between June and July 2024
- Hearings with crypto operators, banks, and supervisory authorities by the summer
- Vote in Senate committee tentatively in September 2024
- Extension of the debate in the House of Representatives in autumn
No automatic speed: the political game is still open, especially regarding the future role of the SEC and the operational limits imposed on decentralized exchanges (DeFi).
What are the risks and opportunities for the market?
On one hand, the regulatory certainty on Bitcoin and crypto could push new capital and US operators to exit the current legal limbo.
On the other hand, the rigidity of federal requirements could exclude several smaller operators from the market and will limit anonymity in transactions.
The analysts see in this scheme a “pragmatic revolution of the rules,” because it positions the United States as a possible new global hub for digital assets. However, the banking lobbies and some political sectors are still opposed to giving too much space to private stablecoins.
Watch out: a season of “migration” of startups and projects between States might open, until the regulatory framework is definitive.
The first effects on the price of Bitcoin and on the main memecoins have already been seen in the Polymarket data and on Twitter, with a sentiment clearly improving after the announcement of the bill.
The news has generated a boom of reactions in the twitter community USA and among the main analysts. Among the supporters, operators like Coinbase and Gemini stand out, who have been asking for clarity and “certain” rules for years.
On the contrary, some privacy defense associations fear that anti-money laundering regulations and federal registration may limit users’ freedom and the founding principle of many DeFi projects.
The dialogue remains open also on Telegram and in the main threads directly from the proposing senators: the public debate on the direction of US crypto regulation is just beginning.
The draft bill of the Senate represents the most solid foundation ever discussed in the USA for crypto regulation.
Bitcoin and its major sisters can finally aspire to a federal “legal citizenship,” with potentially revolutionary effects on prices, innovation, and global attractiveness.
However, the game is now played on the details: who will have the final control, what limits will be imposed on DeFi and stablecoin, how inclusive the new federal scheme will be.
The future of the crypto sector, with Bitcoin at the forefront, also depends on the speed and the compromise that will emerge from Congress.
The coming weeks will be decisive: follow the debate, stay updated, and carefully evaluate every development on official sources and social channels.