A major bipartisan cryptocurrency bill led by U.S. Senators Cynthia Lummis (Republican) and Kirsten Gillibrand (Democrat) is likely to be delayed until next year, according to the duo.
Speaking during At the Bloomberg Crypto Summit on July 19, senators said there was little chance of a comprehensive bill being pushed through the Senate this year, with Lummis noting that:
“I think both Kirsten and I think that the whole bill, as a joint bill, is likely to be delayed until next year. It’s a big topic, it’s comprehensive, and it’s still new to many US Senators, so they have a lot to digest in the few weeks left of this calendar year.”
Responsible Financial Innovation Act was submitted to the U.S. Senate on June 6 and sent to consider the role of the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) when it comes to cryptocurrency regulation, as well as regulation of stablecoins, banking, tax regime of digital assets and interdepartmental coordination.
However, the couple noted that there may be certain areas of their bill that could be passed this year through other legislation, with Gillibrand highlighting that fellow Democratic Senator Debbie Stabenow and senior Republican member John Boozman working in a bill proposing the CFTC as a key cryptocurrency regulator.
The bill stems in part from Lummis/Gillibrand legislation for most digital assets classified as commodities and therefore subject to the jurisdiction of the CFTC.
Lummis also noted that the part of their bill dealing with the regulation of stablecoins issued by financial institutions could also be included in another banking committee bill and voted on this year.
Senators noted that they saw relatively positive reactions to the bill from both sides of the political spectrum.
“There seems to be some serious points of convergence, and as Senator Lummis said, the two committees where the senators are most focused on this topic are banking and agriculture. [agriculture]Gillibrand said, adding that the finance committee also paid some attention as “Senator Wyden and his committee wrote a significant portion of the tax provisions in our bill.”
The CFTC labels 34 crypto and forex firms as unregistered foreign entities.
While the duo acknowledge that their comprehensive cryptocurrency bill will take time to get the attention it deserves before being voted on next year, Gillibrand emphasized that fellow senators, regulators and lawmakers are beginning to recognize the urgent need to at least to ensure the protection of consumer rights:
“Now there is additional interest because they saw that this is important to do, that today consumers are not protected, there is no oversight or accountability and there are no rules of the road.”
“So there is more urgency now, and also more of a sense that this is what we need to do,” she added.
The comments were made in relation to the recent bankruptcy proceedings of crypto lending companies such as Celsius and Voyager, in which users were at serious risk of losing their deposited assets on these platforms.
Lummis also pointed to the collapse of the $40 billion Terra ecosystem in May and the risky nature of algorithmic stablecoins that require further scrutiny.
Credit : cointelegraph.com