Cynthia Lummis and Kristen Gillibrand, the Senators from the United States, are of the view that the majority of altcoins are to be categorized as securities in line with their newly projected legislation, however, they endorsed that the class of Ether (ETH) and Bitcoin (BTC) will be that of commodities.
Both the senators consented to the assessment made by Gary Gensler (the chairman of the Securities and Exchange Commission of the United States) that the majority of the cryptocurrencies fall in the securities category according to the Howey Test. Gillibrand disclosed that a comparatively major amount of cryptocurrencies are securities whereas Ether and Bitcoin are particularly the commodities and that she is on the same point as the CFTC as well as SEC chairmen.
Gillibrand refuted the reports saying that the legislation will turn the Commodity Futures Trading Commission into the chief regulator. According to her, CFTC is the chief regulator and its obligation is to do the regulation of Ether and Bitcoin (known as occupying a substantial portion of cryptocurrencies at present. The duo expressed their remarks on Wednesday during an event conducted by Washington Post, a day following the issuance of the details related to the Responsible Financial Innovation Act.
The chairman of CFTC, Rostin Behnam, was additionally present at the very event and revealed a diverse point of view regarding the altcoins being securities. As per him, while there are perhaps several hundred of them that are like security coins, many others also exist that are commodity coins like ETH and BTC, that need to be under CFTC’s regulation.
The digital asset group’s head at KPMG, Anthony Tuths, said that the legislation in question – in its present form – would probably not go ahead in the predictable future due to the uncertainty about the final decision on which organization among CFTC and SEC is to deal with which the assets. The exclusive bipartisan bill would expectedly be inclined toward the Howay Test in determining if a specific token is categorized as a commodity or security.
Senator Lummis, while appearing in an interview conducted by CNBC on Tuesday, mentioned that they are endeavoring to assimilate the digital asset space into the present regulatory agenda of the country. In her words, they spend considerable time on the latest Howay Test’s definition. The Howay Test denotes an agenda organized on the behalf of the Supreme Court of the United States to ascertain if a transfer meets the requirements of an investment contract, to be classified as a security.
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