A bipartisan bill might soon step foot in the Senate, which will change the entire landscape for the crypto industry. According to the draft crypto bill acquired by Barrons, substantial changes will be made in the industry by the bill, which has been co-authored by Senators Cynthia Lummis (R., Wyo.) and Kirsten Gillibrand (D., N.Y.).
What does the crypto bill say?
According to the provisions of the crypto bill obtained by Barrons, the Commodity Futures Trading Commission (CFTC) will have the primary authority over the crypto spot markets. On the other hand, the Securities and Exchange Commission (SEC) will oversee the majority of cryptocurrencies in the market.
The previous crypto bill aimed to construct a new self-regulatory organization for crypto regulation but the revised bill scales back on the same. SEC will regulate tokens that derive profit from others’ managerial efforts or those that provide a financial interest for the creator. Courts have been given the power to decide if a said token counts as a commodity, while earlier, this power was vested with the SEC too.
Lummis and Gillibrand plan to drop the bill on Tuesday.
“The bill clarifies the universe of digital tokens that would fall under the SEC’s jurisdiction,” said a spokesperson for Lummis. The latest draft “restricts the SEC’s authority instead of expanding it.”
What about DAOs, exchanges, and stablecoin providers?
All the DAOs, exchanges, and stablecoin providers will have to register themselves with the SEC, and also, if there is any debt, equity, profit revenue, or dividend of any variety, then the underlying asset would not be labeled as a digital asset commodity. Hence, the crypto bills aim to drive anonymous projects out of existence.
“Plenty of good in here to at least make clear crypto is allowed in the U.S. But it aims to regulate it as strictly (or even more strictly) than banks and current financial services providers. Not a lot of room for defi, and none for anons/non-reg DAOs,” Cinneamhain Ventures’ Adam Cochran tweeted.
Wow, so first read some good stuff that moves us forward, but a lot of rough stuff.
Overall this gives US crypto clarity but it will have a huge cost and growing pains.
Here's what I noticed in the first read. https://t.co/Cb1TM0DVJs
— Adam Cochran (adamscochran.eth) (@adamscochran) June 7, 2022
Additionally, this is just a draft, and revisions will be made before it passes in the near future.
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