On Tuesday, Republican Senators Tim Scott and Cynthia Lummis introduced a new framework for a bill that aims to create clear rules for how cryptocurrencies and digital assets should be regulated in the U.S. The proposed bill will help define when a digital asset is considered a security (regulated by the SEC) and when it’s a commodity (regulated by the CFTC).
It also allows crypto exchanges to register with the CFTC, which many in the industry see as a more favorable option. The goal is to reduce how much control the SEC has over cryptocurrencies.
Senators Thom Tillis and Bill Hagerty have also joined in support of the bill. The proposal includes some basic rules to prevent illegal activities like money laundering and avoiding international sanctions.
According to Senator Scott, this bill may serve as a starting point for further discussions in Congress. He believes that in order to finally clarify crypto rules, politicians will be able to cooperate without political differences.
Last week, the Senate passed a bipartisan bill on stablecoins, with nearly all Republicans and 18 Democrats voting in favor. Senator Lummis said that was just the beginning, and now it’s time to tackle the bigger challenge, market structure for all digital assets.
Former President Donald Trump posted on Truth Social, urging the House to move “LIGHTNING FAST” on the Senate’s stablecoin bill. However, House Financial Services Chairman French Hill wants the stablecoin and market structure bills to move together.
The Senate Banking Committee’s subcommittee on digital assets will hold a hearing about the bill on Tuesday at 3 p.m. ET. It’s expected to be the next major step in developing U.S. crypto regulation.
