Until the collapse of the Terra (LUNA) network, there was almost no consensus among the crypto community and regulators. The lack of agreement was largely on how exactly to regulate the market with a cryptocurrency bill. And now the US Senator will announce next week the historic cryptocurrency law concerning Bitcoin and altcoins.
LUNA collapse accelerated regulation of Bitcoin and altcoins
Difficult to regulate was the integration of the crypto industry with the financial system. Many see the huge impact of the fiasco as a game changer in the industry. The Terra division not only intensified its regulatory efforts, but also brought abuses under the legitimate browser.
Terra founder Do Kwon is already facing lawsuits in South Korea over the meltdown that destroyed billions of dollars. Earlier this week, a former manager of OpenSea was accused of insider trading of a digital asset, as we covered in the cryptokoin.com news. In a statement made by the Ministry of Justice, the defendant allegedly traded inside information about Non Funible Toen (NFTs).
Crypto integration into the financial system
Within this framework, US Senator Cynthia Lummis from Wyoming has been working on an action plan for months. Lummis, a longtime advocate of cryptocurrencies, is working on a proposal to fully integrate digital assets into the US financial system. She announced in a tweet on Friday that the bill could be announced next week:
We’ve been making fun of him for months, but the time has almost come. A proposal to fully integrate digital assets into our financial system. I’m excited to finally announce this effort next week. Stay tuned.
The Senator also stated how adopting Bitcoin and digital assets will affect the future of the country:
I am a patriot. I want America to win. The thoughtful adoption of Bitcoin and digital assets is the way we win.
Classification of Bitcoin and altcoins will be on the agenda!
According to experts, the bill will likely consider categorizing various cryptocurrencies. There may also be tax laws regarding digital assets and the protection of investor funds.
In December last year, the senator said that the bill would create a new regulatory body to handle cryptocurrency issues. The body will be jointly overseen by the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), according to a Bloomberg report.
In a recent discussion, Senator Lummis said that Bitcoin and Ethereum are commodities in particular. When asked whether the CFTC will have an edge in the upcoming crypto framework, he said yes.
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