Senators Kirsten Gillibrand of New York and Cynthia Lummis of Wyoming are teaming up on a bill that will be introduced soon and would provide regulatory certainty for cryptocurrency.
At a Politico Live event on Thursday, the two teased their upcoming bill. The bill’s parameters are still in flux as the two continue to seek input from stakeholders, with Gillibrand stating that they are at “the beginning of the process.” As a result, a “broad-based regulatory framework for how this industry may be regulated in the future” will be developed.
Although no specifics have been released, Lummis and Gillibrand have stated that the bill will not affect any existing securities definitions used by the Securities and Exchange Commission.
“That is not our bill’s aim,” Gillibrand stated. “We’ll use current parameters and definitions to arrange various types of merchandise in various locations.”
According to Gillibrand, it will also feature a “standing body” that will make decisions as the business evolves and parameters shift.
Lummis’ yet-to-be-filed legislation would mandate
“a new organization under the joint jurisdiction of the Commodity Futures Trading Commission”
” and the Securities and Exchange Commission to manage the digital asset market,”
among other things, according to news released in December.
Lummis and Gillibrand claimed at the Politico event that their bill will provide the CFTC additional resources to regulate the crypto sector.
The bill also aims to allay concerns raised by the recently passed infrastructure bill, which aimed to tighten crypto tax reporting requirements. The measure includes a contentious definition of “broker,” leaving some in the dark about which organizations would be obligated to report user data. The upcoming bill, according to Lummis, defines the broker term.
“The definition of broker is changed in a way that reflects what truly happens on the ground with the software developers, miners, validators, and other people,” she explained.
According to Gillibrand, the bill will be introduced “in the coming weeks.” At that point, it would go through the normal committee process, including hearings and proposed amendments.
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