According to one of the lawmakers behind the initiative, the US Senate is not likely to vote on a comprehensive piece of legislation this year that would change how Washington regulates the cryptocurrency sector.
Senator Cynthia Lummis of Wyoming stated on Tuesday that it is likely that the comprehensive plan she and Democrat Kirsten Gillibrand introduced last month won’t be reviewed until the following year.
Several Senate committees, which must first approve certain sections of the idea, could advance certain parts of the plan in 2022, according to the legislators.
In a joint prerecorded interview with Gillibrand that was played at the Bloomberg Crypto Summit on Tuesday, Republican Lummis said, “It’s a big topic, it’s comprehensive, and it’s still new to many US senators,” She continued by saying that parliamentarians might find it challenging to rapidly understand the legislation due to its broad breadth.
According to Lummis and Gillibrand, their strategy aims to simultaneously establish safeguards for consumer protection and leave room for innovation in digital assets. The business and regulators are keeping a close eye on the bipartisan proposal because it is thought to be one of the initiatives with the strongest chances of becoming law.
Notably, the proposal would give the Commodity Futures Trading Commission more control over digital assets that are regarded as commodities, presumably giving the regulator greater control over Bitcoin and Ether. The agency’s mandate is currently primarily restricted to cryptocurrency derivatives. According to the proposed legislation, the Securities and Exchange Commission would regulate coins used to solicit donations from the general public, much like a stock offering.
The legislation also specifies reserve needs for reporting energy consumption, observing sanctions, and stablecoin compliance.
According to Gillibrand, the section of the bill that addresses CFTC jurisdiction is nearing completion, and the Senate Agriculture Committee may vote on it by the end of the year. Lummis stated that the stablecoin portions of the bill may pass the Senate Banking Committee in the upcoming months.
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