Proposed US senate bill could be a big win for crypto industry

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Proposed US senate bill could be a big win for crypto industry

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 Proposed US senate bill could be a big win for crypto industry
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Highlights

  • Crypto investors are anxiously awaiting the outcome of a US senate bill, which, if passed, would effectively give reign to its preferred regulator - the Commodity Futures Trading Commission, or the CFTC
  • The bill is set for introduction in the US today and effectively sidelines the SEC chairman, Gary Gensler, who has taken an aggressive view toward crypto assets
  • Bitcoin grew again from yesterday, climbing around 3.5 per cent and was recently trading at US$31,038

Crypto investors are anxiously awaiting the outcome of a US senate bill, which, if passed, would effectively give reign to its preferred regulator - the Commodity Futures Trading Commission, or the CFTC.

This would be a much preferred option to the alternative regulatory body - the Securities and Exchange Commission, the SEC.

The proposed bill is being headed by US senators Cynthia M. Lummis and Kirsten Gillibrand, who have boldly called it the first serious attempt to put into place comprehensive regulation in the crypto industry.

The bill is set for introduction in the US today and effectively sidelines the SEC chairman, Gary Gensler, who has taken an aggressive view toward crypto assets.

Also Read: AVT token up over 100%: What’s propelling Aventus crypto?

Gensler has argued that the policing of crypto assets should fall into the responsibility of the SEC, given he sees them as equated to securities – much like stocks in publicly traded companies.

However, a joint press release from senators Lummis and Gillibrand’s offices says that they both reject Gensler’s claim, instead saying that the vast majority of digital assets are much more adjacent to commodities rather than securities.

While the CTFC already regulates the two largest cryptocurrencies, Bitcoin and Ethereum, the new proposal would also hand the agency oversight of the crypto spot market. Moreover, the CTFC envisions the market including a wide variety of digital tokens.

The proposed bill would also allow for crypto trading platforms such as the publicly-traded Coinbase to register with the CFTC.

Senator Lummis released a statement yesterday, emphasising the importance of integrating digital assets into existing law.

Meanwhile, Senator Gillibrand added the bill will build a regulatory framework that encourages innovation while also defining sufficient laws to protect consumers.

Market News

Bitcoin grew again from yesterday, climbing around 3.5 per cent and was recently trading at US$31,038. Ethereum also gained, climbing three per cent percent from yesterday to reach US$1,815.

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Image Source @ 2022 Kalkine Media® 

Data Source: CoinMarketCap.com, based on top 100 cryptos. 

Note: Growth from the 24 hours prior to 12:30pm AEDT 

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