After being postponed in 2022, according to United States Senator Kirsten Gillibrand, a new draft of the bipartisan crypto bill she and Senator Cynthia Lummis authored would be presented to the incoming Congress.
During a March 8 Senate Agricultural Committee hearing on supervision of the Commodities Futures Trading Commission, Senator Gillibrand questioned CFTC head Rostin Behnam about the crypto bill she and Senator Lummis had previously prepared to establish a regulatory framework for the crypto sector. Mid-April is when the subsequent version of the bill will be made accessible, as per Gillibrand.
Gillibrand stated that the ambition is to establish a platform to initiate a nationwide discussion on a comprehensive approach to digital assets. This would include ensuring that the SEC regulates digital assets with securities characteristics while commodities-based assets are overseen by the CFTC. Additionally, the OCC would regulate stablecoins and implement tax provisions for the entire industry.
Behnam remarked that Gillibrand and Lummis had carefully and attentively studied all market components in the most recent draft of the cryptocurrency law, emphasizing possible concerns with stablecoins and cybersecurity in particular. Following the introduction of the Lummis-Gillibrand law in March 2022, the cryptocurrency industry faced a tremendous shift, with corporations including FTX, Voyager Digital, BlockFi, and Terra failing.
The chair of the CFTC included that, in view of the incidents observed with FTX, it is essential to prioritize the separation of assets, conflict of interest avoidance, and thorough partitioning of such conflicts. In addition, different queries must be posed concerning digital assets, including matters of cybersecurity, third-party service providers, and vendor risk.
Despite the crypto bill being a bipartisan effort between Democrats Gillibrand and Republican Lummis, it is uncertain whether the new Congress will move forward with the proposal. In July, Lummis commented that numerous legislators found the bill challenging to comprehend and process. If enacted by both the Senate and the House and signed into law, the bill will likely provide much-needed regulatory clarification for numerous crypto initiatives, including which assets would fall under the jurisdiction of the SEC and CFTC.
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