In the US, the crypto market collapsed after the SEC sued Binance and Coinbase. In particular, the SEC’s designation of some cryptocurrencies as ‘securities’ deepened the collapse. After that, some crypto exchanges decided to exit the USA in response. However, US Senator Cynthia Lummis is pushing for cryptocurrency regulations with a bipartisan bill that will focus primarily on token definitions.
Lummis aims for crypto-friendly regulation in the US
As you follow on Kriptokoin.com, the crypto market is having a tough time under regulatory pressure. The SEC’s lawsuit against leading crypto exchanges Binance and Coinbase further exposed this. In addition, regulatory uncertainty created an atmosphere of panic in the market. Now, US Senator Cynthia Lummis has announced efforts from social media to create a regulatory framework that would allow individuals and companies to own and trade digital assets in the United States. The move was greeted with applause from the wider crypto community on Twitter.
Working with Senator Kirsten Gillibrand, Lummis is working on a renewed bipartisan effort to introduce comprehensive regulations for cryptocurrencies. This legislative effort is expected to gain traction on Capitol Hill later this year and pave the way for a much-needed framework for the rapidly evolving digital asset space. Lummis underlines that the opposition has successfully blocked the inclusion of a 30% digital asset mining tax in the latest debt ceiling agreement. He also highlights that the struggle to create a clear regulatory environment for the industry is not over yet. In this context, Lummis shared the following:
We have successfully blocked POTUS’ 30% digital asset mining tax from being included in the debt ceiling agreement, but the fight is not over yet. I am working on a regulatory framework that will enable individuals and companies to own and trade digital assets in the United States. Stay tuned…
We successfully prevented @POTUS' 30% digital asset mining tax from being included in the debt ceiling deal but the fight is far from over.
I am working on a regulatory framework that will allow individuals and companies to own and trade digital assets in America.
Stay tuned…
— Senator Cynthia Lummis (@SenLummis) June 10, 2023
What will the bill bring?
Earlier, during a digital assets symposium, Senator Gillibrand stated that the revised version of the bill will be more detailed, specifically in terms of describing tokens and the processes required to acquire them. According to the senators, the move aims to provide much-needed clarity. Besides that, it aims to address the current uncertainties in the cryptocurrency environment.
According to recent reports, the forthcoming bill primarily aims to define digital assets. It also aims to potentially remove the “securities” label associated with them. In addition, the proposed legislation is likely to introduce a universal ban on algorithmic stablecoins. However, further deliberation is required to identify stablecoin issuing entities and the requirements for their USD reserves.
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