Wyoming Senator Cynthia Lummis has revealed details of the bill to regulate cryptocurrencies. It defines the categories of crypto assets, but there are no provisions for NFTs.
In an interview with Axios, Cynthia Lummis reportedthat the bill adapts the US legal framework so that cryptocurrencies and traditional assets fall under the same regulatory categories. For example, if bitcoin is considered a commodity traded on the spot and futures markets, it will be supervised by the US Commodity Futures Trading Commission (CFTC). And if any crypto asset can be classified as a security according to the Howey test, then it will be controlled by the U.S. Securities and Exchange Commission (SEC), Lummis explained.
The draft law details several categories into which cryptoassets can be divided: commodities, securities, stablecoins, and central bank digital currencies. Each group will be governed by different committees. However, the current version of the bill does not include provisions for non-fungible tokens (NFTs), as it is not clear how they should be classified. Lummis hopes that in the future regulators will come to a consensus on this issue and decide which NFTs should be regulated. Unlike cryptocurrencies, some NFTs are sold as unique works of art, while others are used as internal tokens.
Lammis emphasized that the bill would not restrict the development of digital assets. In contrast, the cryptocurrency industry, which now has a total market capitalization of almost $1.8 trillion, needs to create a regulatory framework that will protect users without hindering innovation.
The senator added that the lack of guidance from Congress on the regulation of cryptocurrencies and decentralized technologies has led agencies such as the SEC to make hasty and ill-conceived decisions regarding crypto companies. After the passage of this bill, the situation should change, Lammis is sure. The bill does not aim to legalize bitcoin as a means of payment in the US, but it could serve as a “starting point” for other countries to regulate cryptocurrencies.
Earlier, Lummis said that the US Federal Reserve (Fed) is deliberately delaying the registration of crypto-currency companies in Wyoming, despite having special licenses.
Source: Bits
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
