US Senators Working on Broad-Based Crypto Regulation
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Loading... - Vanessa Davis
- 28 Mar 2022
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US Senators to Introduce Comprehensive Framework to Regulate Crypto Industry
U.S. Senators Kirsten Gillibrand (D-N.Y.) and Cynthia Lummis (R-Wyo.) are working together on “a broad-based regulatory framework” for how the crypto industry should be regulated, they explained Thursday at a Politico Live event.
Senator Gillibrand described:
"The work we’re doing is going to be a very complex and intensive review of the different aspects of this industry."
“Some will be regulated under the CFTC [Commodity Futures Trading Commission], some parts will be regulated under the SEC [Securities and Exchange Commission], some we will need to look at more broadly and we intend to have a regulatory commission that can look at these issues of first impression and make judgments and guidance,” she added.
The two senators are talking to stakeholders, regulators, and industry experts “so that all voices are part of this legislative process,” Gillibrand stressed.
Senator Lummis was asked whether the CFTC will have a greater role under the new crypto framework. She replied:
"The answer is definitely yes. When you look at bitcoin and ethereum in particular, it’s pretty clear to me that those are commodities."
Since the CFTC will have a key role in regulating crypto, Lummis said, “It’s so fabulous to work on this with Senator Gillibrand because she’s on the Ag committee which has jurisdiction over the CFTC.” She noted that “The SEC will also have a huge role in this space.”
However, the pro-bitcoin senator from Wyoming clarified that since there are currently over 18,000 cryptocurrencies, not all of them are commodities. “So, we’ll still be using the old Howey Test from the 1940s which helps define what’s a security and what’s a commodity.”
She further clarified that stablecoins and central bank digital currencies (CBDCs) will also be addressed in the bill “to a smaller measure.” Read More…
