Cynthia Lummis, a senator, stated that senators unfamiliar with cryptocurrency would require some time to understand and process the suggestions.
According to the two senators, the key crypto legislation spearheaded by Republican Cynthia Lummis and Democrat Kirsten Gillibrand of the United States Senate will most likely be postponed until the next year.
During their appearance on July 19 at the Crypto Summit hosted by Bloomberg, the Senators stated that there is a remote possibility that the full law will be pushed through the Senate this year. Lummis made the following point during his speech:
“I believe that Kirsten and I share the same opinion, which is that it is more probable for the measure to be postponed until the next year if it is considered as a whole and in one piece. It is an important topic, all-encompassing, and it is still fresh to a good number of United States Senators; hence, it is a lot for them to process in the few weeks that we still have left in this calendar year.
The goal of the Responsible Financial Innovation Act, which was proposed on June 6 in the United States Senate, is to address the role of the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) concerning cryptocurrency regulation. Additionally, the bill seeks to address the regulation of stablecoins, banking, the tax treatment of digital assets, and interagency coordination.
Gillibrand highlighted that friend Democrat Senator Debbie Stabenow & Republican ranking member John Boozman were working on a bill that proposes making CFTC the key regulator for cryptos. The pair of lawmakers noted that there might be specific instances of their bill that may clear this year via other legislation. Gillibrand highlighted that the pair of lawmakers are working on the bill.
Major Provisions Of The Bipartisan Bill
Regarding the majority of digital assets being categorized as commodities and, as a result, being under the authority of the CFTC, this bill incorporates certain provisions from the legislation proposed by Lummis and Gillibrand.
Lummis also mentioned that the portion of their measure centered on the regulation of stablecoins produced by financial institutions might be bundled into another bill from the banking committee and voted on this year. He mentioned that this possibility was brought up during their discussion.
The senators mentioned that they had observed a generally favorable response to the law from people on both ends of the political spectrum.
Gillibrand stated that
“There seems to be some serious common ground forming. The two committees that have the most focused Senators on this topic are banking and agriculture. There has also been some focus from the finance committee, as Senator Wyden and his committee wrote a good part of the tax provisions in our bill.”
The CFTC has identified 34 cryptocurrency and FX companies as unregistered foreign corporations in a related development.
Gillibrand highlighted that fellow Senators, regulators, and legislators are beginning to realize the urgent need to at least get consumer protections in place while acknowledging that it will take time for their thorough crypto bill to get the proper attention before it gets voted on the following year. While the two acknowledge that it will take time for their bill to get the proper attention before it gets voted on the following year,
“There is added interest now because they’ve realized that this is vital to accomplish, that consumers are not being protected today, there’s no monitoring or responsibility, and there are no road rules.”
She continued, “Therefore, there is a greater sense of urgency now, and there is also a greater sense that this is something we need to do.”
These remarks were made in referring to the current bankruptcy proceedings that were initiated by crypto lending companies such as Celsius and Voyager. As a result of these proceedings, users have been placed in a position where they run a significant risk of losing any assets they have deposited on those platforms.
Read More Stories: 59.5% of Bitcoin Mining Done With Green Energy
Lummis also brought out the collapse of the $40 billion Terra ecosystem in May as another example and the dangerous nature of algorithmic stablecoins, which calls for additional monitoring.