U.S. Senators Cynthia Lummis and Kirsten Gillibrand haven’t thrown in the proverbial towel, judging by their recent unveiling of a revised draft for comprehensive crypto regulation. While its chances of morphing into a law appear slim, it’s in the race to pave the way for essential dialogues among Congress, shaping potential smaller legislation.
The bill marks an evolution from a previous draft, penned a year ago, signaling a fiery commitment among lawmakers to create forthright crypto laws, despite the curbed enthusiasm from their Congress counterparts. Navigating the ambiguous waters of cryptocurrency assets, regulatory bodies oscillate in defining jurisdictional boundaries, therein lies the need for new laws to smoothen the wrinkles.
Laying the groundwork for decentralized finance definition, the Senators’ bill delves into anti-money laundering provisions, custody rules, alongside providing the CFTC with decisive control over crypto issuers. Notably, the SEC‘s role has been defined, albeit moderately limited.
The multiplex of the crypto industry’s looming questions are addressed within sections 4 and 5 of this bill. The terms ‘crypto asset’ and ‘crypto asset exchange’ have been defined under the commodities law, granting the CFTC authority over crypto spot markets. The objective aligns with the regulator’s preference and mirrors last year’s version of the bill.
That draft, though, met critique from SEC Chair, Gary Gensler, cautioning against potential infractions to securities markets rules. Evidently, these concerns have been catered to in the new bill and incorporated in a revised definition for crypto assets, which are not securities, despite not subscribing to decentralization, and banks on “entrepreneurial and managerial efforts that determine” their value.
Integrating “de minimus” tax exemption for payments up to $200 is a noteworthy provision. It circumvents the current rigorous tax procedures – all types of transactions face capital gains/loss tax, without considering the transaction’s size.
The revised bill conjures dialogues, inviting industry insiders to weigh in on its various provisions. While its journey into law may remain uncertain, it seamlessly steers conversations and determinations around comprehensive crypto regulation.
Source: Coindesk
