The first draft bill for crypto regulation in the US will be unveiled this week. The crypto-friendly Senator Lummis will reveal the bill before Congress.
According to Politico, the bill will clarify different parts of crypto regulation. In addition, it will classify different digital assets under the correct category.
On her Twitter page, Lummis confirmed that the bill was ready. She also added that if adopted, crypto will become a financial asset. On the 7th of June, the proposal will be revealed.
“We have been working on the bill for months. However, the time to unveil it is around the corner. This bill will integrate crypto-assets into the US financial system,” said Lummis.
Crypto Bill Ignites Lobbying Efforts
The sponsors of the bill are Senator Lummis and Gillibrand. They have talked about the bill at various media appearances.
However, several crypto executives have sent suggestions to both senators. Most suggestions dwelt on crypto tax and regulation of exchange firms. It is noteworthy to say that both senators are known supporters of the crypto community. As a result, the proposal will most likely favor the crypto industry.
Bill May Set Up Clash With SEC
In the bill, there is a suggestion to establish a self-regulatory body. This body will be responsible for governing the crypto sector.
Unfortunately, this may lead to a battle with the US SEC. The SEC opines that most crypto assets are securities and fall within their jurisdiction. Meanwhile, some crypto executives have stated that crypto is not securities.
In addition, the CFTC will be given more power to oversee the crypto sector. Furthermore, the bill also mentioned Bitcoin miners. The proposal aims to exempt BTC miners from the rules that govern financial brokerage companies. As a result, both entities will be treated differently.
As per Finbold, the CFTC and SEC will handle specific functions. They include stablecoin regulation, consumer protection, and establishing a new association.
Apart from the draft bill, the Biden administration also researched Bitcoin mining. Recently, several investors lost millions of dollars due to the fall of the TerraUSD. After that event, numerous officials called for the regulation of the crypto space.
In other news, the US Federal Reserve has joined the clamor for crypto regulation. The Governor, Christopher Waller, stated that rule would help to reduce crypto scams and fraud. The official believes it is high time the crypto sector is regulated.
The crypto community awaits the unveiling of the bill. However, there might be opposition to the proposal, especially from non-crypto supporters.