US senators introduce bipartisan crypto bill

By Raffaele Redi
• Updated

The regulatory proposal compares some coins to commodities

US Republican senator Cynthia Lummis and Democratic senator Kirsten Gillibrand introduced a bill to regulate digital assets on Tuesday 7 June 2022.

The proposal, called the Responsible Financial Innovation Act, aims to set up a clear federal regulatory structure for digital assets in the US.

“As a former state treasurer, I am excited by the possibilities of incorporating digital assets into the American financial system. The legislation that Sen. Gillibrand and I are proposing will do just that,” tweeted Senator Lummis.

A “comprehensive” bill

The proposal, which compares some cryptocurrencies to commodities, is considered to be one of the most comprehensive on cryptocurrencies to date as it covers all kinds of tokens, from bitcoin (BTC) and altcoins to stablecoins and NFTs, while crypto miners would be regulated at the state level.

“It is a very comprehensive bill. It includes coins that are commodities, coins that are securities, it includes stablecoins, it includes a discussion about CBDCs [central bank digital currencies] consistent with what we heard earlier, and a small nod to NFTs,” Senator Lummis was reported as saying in an interview with Forbes.

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Criticism of the bill

However, with a final draft already circulating on Twitter, some experts claimed the new measures could hit several minor cryptos alongside exchanges, which would have to invest more funds to comply with new compliance rules.

Commenting on the draft, Adam Cochran, a partner at Canadian venture capital investment firm Cinneamhain Ventures, said: “This looks like it was only a draft bill and may not be complete/final/even real. I would say if it is though, and if it passed in this form, it’s good LONG term for big entities, super painful near term for 99% of crypto.”

According to Cochran, the proposal would crack down on DAOs, exchanges and stablecoins, all of which would have to register in the US for tax purposes.

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