New York Senator Kirsten Gillibrand and Wyoming Senator Cynthia Lummis have joined forces to work on a bill that will bring clarity to the regulation of cryptocurrencies.
At a Politico Live event, they revealed that the bill’s provisions are still in the development phase as senators continue to consult with stakeholders. Gillibrand said that the result of their joint work will be a “broad regulatory framework” for regulating the cryptocurrency industry as a whole. The senators did not provide specific details, but clarified that the bill would not change the existing definitions that the US Securities and Exchange Commission (SEC) uses for securities.
The bill implies the creation of a permanent body that will make decisions on the regulation of the cryptocurrency industry as it develops, and, if necessary, make changes to them. Lummis said back in December that this new body would be managed by the SEC and the US Commodity Futures Trading Commission (CFTC). Now Lummis has clarified that the bill will give the CFTC additional resources and powers to regulate the cryptocurrency market.
The initiative aims to address misunderstandings surrounding an infrastructure bill that sets reporting requirements for brokers. It contains a controversial definition of “broker”, which raises the question of what types of organizations should report user information to regulators. Lummis said the bill would clarify that definition and reflect what software developers, miners and validators should be doing. Gillibrand added that the proposal will be submitted to legislative committees for approval in the next few weeks.
Last year, Lummis criticized Hillary Clinton for saying that bitcoin could destabilize the US economy. The senator is of the completely opposite opinion.
Source: Bits
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