Kirsten Gillibrand and Cynthia Lummis introduce Crypto bill outlining sweeping plan for future rules. Details in the comments.
Source: https://www.washingtonpost.com/business/2022/06/07/crypto-lummis-gillibrand-regulation/
Draft of Bill: https://www.scribd.com/document/576008331/Lummis-Bill-Draft
Other Coverage:
Politico: https://www.politico.com/news/2022/06/06/lummis-and-gillibrands-crypto-hype-machine-00036712
Financial News London: https://www.fnlondon.com/articles/senators-set-to-propose-sector-friendly-crypto-rules-that-promote-financial-innovation-20220607
- Defines the terrain between crypto securities and commodities.
- Most crypto would be considered commodities--for example ETH, LRC, etc.
- The CFTC would be the crypto watchdog (having authority over spot markets)--This would be a new power for this federal agency--does not currently have a ton of reach into cash markets)
- Provides legal clarity on how to handle customer holdings. (let's not rug users holdings if an exchange goes caput, right?!?!)
- seeks to clarify the meaning of crypto broker (seeking to protect wallet providers and devs from certain tax reporting requirements)
- Calls for a study on a self-regulatory organization from the SEC and CFTC and a proposal for starting one.
- Those regulated by the CFTC would have to start paying fees to fund the CFTC--like how the SEC works now.
- An industry 'sandbox' to test new products (limited scale and duration)
