The long-awaited bill that directly affects Bitcoin and altcoins has finally been released. The bill, released on Tuesday, lays the groundwork for comprehensive crypto regulation that will apply in the United States.
What does the law affecting bitcoin and altcoins include?
The bill was drafted by Senator Cynthia Lummis and Kirsten Gillibrand from different parties. The bill was called the Responsible Financial Innovation Act. Also, this bill represents a rare collaboration between Republicans and Democrats to regulate cryptocurrencies. According to a report by Forbes, the new law will exempt people with assets under $200. Accordingly, the law contains provisions that will encourage the use of cryptocurrencies as currency. Also included in the bill is the establishment of a crypto advisory committee to guide regulators.
Additionally, according to the law, the Securities and Exchange Commission (SEC) is no longer dealing with cryptocurrencies. Digital assets will now be regulated by the Commodity Futures Trading Commission (CFTC). However, some cryptocurrencies will become required to report to the SEC twice a year. Uncertainty reigns over the SEC’s stance on crypto as a security. As such, several crypto advocates are calling for a regulatory action on this issue. However, it should be noted that the law is currently a draft and its articles may change. The bill will be subject to a series of reviews and votes before it goes into effect.
Cryptocurrency law, a regulatory response to the Terra crash
The bill, which came one month after the Terra crash, lays down strict laws for stablecoin issuers. Accordingly, they will need to be registered in the United States and hold 100% reserves to support the token. The move came after the Terra accident. As Cryptokoin.com reported, Treasury Secretary Janet Yellen and SEC Chairman Gary Gensler called for the Terra incident not to happen again at that time. The bill also comes after Joe Biden issued an executive order covering cryptocurrencies earlier this year. The executive law contained a clear call for regulation in this area.
Will crypto anonymity become illegal?
The bill was announced by Lummis and Gillibrand during a Politico event in March. The new law aims to recognize crypto in the American financial system. However, it also aims to suppress the anonymous nature of the space. Accordingly, the bill plans to impose strict registration and disclosure requirements on all crypto entities, including DAOs. Accordingly, DAOs will need to register as a corporation in the United States. Additionally, public disclosure of the identities of the DAO’s founders will be required. The move is likely to drastically reduce anonymity in the crypto space.
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