US Senator Lummis’ bill integrating crypto into the financial system will be unveiled this week
The first United States law Project on cryptocurrencies is expected to be unveiled to Congress by bitcoin-friendly Wyoming Senator Cynthia Lummis this week.
The bill, which is expected to be introduced on Tuesday, will clarify various elements of crypto regulation while identifying the correct classification of digital assets, Politics reported June 6.
Senator Lummis confirmed drafting the bill via his Twitter account on June 3 while noting that if incorporated into law, cryptocurrencies will officially become part of the financial system.
“We’ve been teasing it for months, but the time is almost here – a proposal to fully integrate digital assets into our financial system. Excited to finally unveil this effort next week. Stay tuned,” Lummis said.
Crypto Bill Sparks Lobbying Efforts
Notably, Lummis and his co-sponsor, New York Senator Kirsten Gillibrand, have been teasing the bill for months through various events and media appearances. Interestingly, the bill has been cited as a key driver for the lobbying efforts of several crypto industry executives.
Additionally, helpers at Lummis and Gillibrand have received plenty of suggestions on what to include in the bill of major crypto startups. Most of the suggestions would be based on crypto exchange regulations and tax policies.
Following President Joe Biden’s signing of an executive order calling on federal agencies to explore cryptocurrency development in March, congresswomen also hinted that the contents of the bill were almost ready.
The Lummis Crypto Bill:
Potential clash with the SEC
Among the bill’s suggestions is the creation of a self-regulatory body.
However, the proposal is likely to trigger clashes given that the Securities and Exchange Commission (SEC) has argued that most digital assets potentially fall under the agency’s jurisdiction. Notably, some crypto executives are pushing to move away from the SEC.
As lawmakers hinted, another potential proposal in the bill seeks to exempt Bitcoin miners from the rules applicable to financial brokerage firms. At the same time, the bill aims to give the Commodity Futures Trading Commission (CFTC) additional powers to oversee the crypto markets.
As Finbold reported, things like consumer protection, stablecoin regulation, and the creation of a new organization will be handled by the combined authority of the SEC and CFTC.
Calls to regulate cryptocurrencies in the United States have accelerated in recent months after the crash of the Terra ecosystem. Along with Lummis’ bill, the White House also commissioned research to examine Bitcoin mining.
Elsewhere, the Federal Reserve has also called for crypto regulation. Institution Governor Christopher Waller noted that widespread crypto losses could become morally intolerable if nothing is done now.