US senators unveil bipartisan crypto regulation bill
The new bill will place crypto oversight under the purview of the more lenient Commodities Futures Trading Committee (CFTC) rather than the stricter SEC.
US Senators Cynthia Lummis and Kirsten Gillibrand have put forward a bill proposing that regulation of cryptocurrencies be under the purview of the Commodities Futures Trading Commission (CFTC). It is one of the more comprehensive and ambitious efforts to create federal oversight on the ever-growing crypto markets.
The bill's attempt to put the CFTC in charge reflects its authors belief that a less heavy-handed approach is needed, as the CFTC is a smaller organisation with a reputation for leniency, according to a report by Reuters.
The Securities and Exchange Commission (SEC), which regulates public stock markets, is considered a stricter body, and recently announced that it was going to increase its crypto regulation team.
The last couple of weeks have seen varied US governmental authorities take on problems they have noticed. The SEC is currently investigating crypto exchange Binance and its subsidiaries for possible insider trading, while New York prosecutors have charged an ex-OpenSea product manager for insider trading of NFTs on the platform.
This new bill will also tackle stablecoin regulation, as the crisis created by the TERRA and LUNA meltdown earlier this year brought the problem to the government's attention. The bill seeks to require stablecoin issuers to hold high quality liquid assets equal to the value of all outstanding stablecoins, alongside public disclosures of these assets.
While the bill is not expected to become law in the current session due to the upcoming mid-term elections in America, the bipartisan nature of its authors may provide some continuity, regardless of the voting results.
Senator Cynthia Lummis is a Republican and a vocal cryptocurrency advocate, while Senator Kirsten Gillibrand is a member of the opposition Democrat party.
Edited by Teja Lele
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