- Despite progress on cryptocurrency legislation in both the Senate and the House last year, the collapse of FTX in November disrupted these efforts.
- Senators Cynthia Lummis and Kirsten Gillibrand are nearing the completion of a comprehensive bill on the sector, the Responsible Financial Innovation Act.
- The proposed legislation, expected to be presented next Wednesday, will be the most comprehensive bill addressing key issues such as market structure, stable coin oversight, and taxes.
Comprehensive Cryptocurrency Bill on the Horizon
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Despite significant strides made in cryptocurrency legislation in both the House and the Senate last year, the sector experienced a setback with the collapse of FTX in November. Although several laws were enacted during the current legislative year, they fell short of addressing all the needs of the sector. However, US Senators Cynthia Lummis and Kirsten Gillibrand have been working on a comprehensive bill for the sector, the Responsible Financial Innovation Act.
Addressing Key Issues in the Cryptocurrency Sector
The bill, which is expected to be presented by Lummis and Gillibrand next Wednesday, promises to be the most comprehensive yet, tackling fundamental issues such as market structure, stable coin oversight, and taxes. In an interview with Fortune, Lummis stated that the legislation will be the most comprehensive bill to date, providing robust consumer protections and appropriately addressing the current state of affairs with crypto assets.
Overcoming Previous Setbacks
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The bill was initially presented in June 2022 but was overshadowed by a series of bankruptcies in the crypto sector and the collapse of FTX. After months of revisions, the senators are now ready to present the bill again. The legislation aims to solve intricate issues in the crypto industry, such as how transactions will be taxed, how stable coins will be regulated, and how the jurisdiction of the Securities and Exchange Commission and the Commodity Futures Trading Commission will be determined.
Challenges in Passing the Bill
Despite the Senate’s reluctance to pass comprehensive crypto legislation, Ron Hammond, the government relations director of the crypto trading group Blockchain Association, believes that Lummis will be at the forefront of these discussions. According to Hammond, even if the House, controlled by Republicans, votes on the law, the real obstacle is the Senate, particularly the Senate Banking Committee and crypto opponents like Chairman Sherrod Brown and Senator Elizabeth Warren. Hammond emphasized the importance of timing in crypto policy, regardless of whether one is pro-crypto or anti-crypto.