The US has adopted a positive approach towards cryptocurrencies. They are open to bringing regulations that work in favor of the adoption of new tech and keep investors safe as well. So, the US Senators are working on comprehensive crypto regulations that will be broad-based. The senators say that the work is complex, and they are reviewing different aspects of the industry to make it happen.
The new crypto regulatory framework
Kristen Gillibrand and Cynthia Lummis are the US Senators working on this new framework to regulate cryptocurrencies. They said that some cryptocurrencies would be regulated under the Commodity Futures Trading Commission (CFTC), while some will be under the Securities and Exchnages Commission (SEC). They also intend to have a commission that can work on making judgments and giving guidance.
Kristen also explained that the CFTC would have an essential part in the regulation. According to them, Bitcoin and Ethereum can be primarily identified as commodities. And therefore, their regulation should happen in a similar way. Kristen Gillibrand is on the Ag committee with jurisdiction over the CFTC, which will make regulations much easier to implement.
Cynthia also said how they are going to differentiate between commodities and securities. Since not all of them belong to a single category, she mentioned the Old Howey test from the 1940s, which will help in differentiating the same. They will also be addressing investor safety and market certainty in the bill, which is a priority for both senators.
Working with stakeholders
The senators are not just going in blind with what they think is suitable for the industry. They are working with different stakeholders and taking their viewpoints into consideration to foresee different challenges of the industry. Kristen and Cynthia will keep working on the bill for the next few weeks and introduce it soon. They plan to get a vote on it by the end of 2022. They are optimistic about it, and it seems the regulations can bring a change in the way crypto is dealt with.
What are your thoughts as US Senators are working on comprehensive crypto regulations? And do you think that these regulations will help in the growth of the market? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
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