New US crypto bill defines digital assets as commodities
A new crypto bill has been unveiled in the US that more clearly defines what the US government considers crypto assets to be.
The bill was introduced by Republican Senator Cynthia Lummis and Democratic Senator Kirsten Gillibrand. It is seen as an important step forward for the US, with it seeking to define most digital assets as commodities. This will give more clarity to investors and other stakeholders around the regulators that have remit over crypto, and in this case, with the definition proposed by the senators, crypto regulation would fall within the jurisdiction of the Commodity Futures Trading Commission (CFTC).
In a statement on her website, Senator Gillibrand said:
“Digital assets, blockchain technology and cryptocurrencies have experienced tremendous growth in the past few years and offer substantial potential benefits if harnessed correctly. It is critical that the United States plays a leading role in developing policy to regulate new financial products, while also encouraging innovation and protecting consumers.”
She went on to add,
“The bipartisan Responsible Financial Innovation Act is a landmark bill that will establish a regulatory framework that spurs innovation, develops clear standards, defines appropriate jurisdictional boundaries and protects consumers. Importantly, the Lummis-Gillibrand framework will provide clarity to both industry and regulators, while also maintaining the flexibility to account for the ongoing evolution of the digital assets market. I am proud to introduce this bipartisan bill with Senator Cynthia Lummis, who has been a passionate and engaged partner, and look forward to working alongside her to build support.”
The bipartisan support for the bill is a strong sign that the bill will face few troubles in moving through the various houses for approval.
This is all good news for the crypto industry, which has been craving clarity, and the rest of the world will be paying attention to the impact that this has in defining crypto themselves.