A pair of senators in the United States from two parties bright a bill recently, which would create new rules for digital currency.
Cynthia Lummis, one of the Republican Senators, and Kirsten Gillibrand from the Democratic Party jointly introduced the bill. Lummis is one of the most vocal advocates of cryptocurrency in Congress. The bill is an ambitious initiative by US lawmakers to have a check on the quickly growing and yet controversial digital currency markets.
This new measure will lay down that CFTC will have a pivotal role to play instead of the Securities and Exchange Commission in the regulation of crypto products. The senators mentioned that most of these crypto products function less like securities and more like commodities.
Many experts think the smaller CFTC to be a more amicable regulator for digital currency. That’s because the Securities and Exchange Commission usually wants crypto products to comply with several securities requirements.
Expectations from the new bill
However, we should not expect this bill to become law in the ongoing Congress session. The midterm elections will start after a few months. However, the framework might act as a beginning point to facilitate debates in the future. These debates can be about how to oversee such markets in the best possible manner.
The US senators mentioned they intended the bill to provide clarity and certainty to digital currency markets apart from consumer protections. The bill might also stipulate new guidelines for “stablecoins.” These products have been facing a lot of pressure recently after the massive crash of TerraUSD, a high-profile stablecoin.