Senator Gillibrand Announces Plan To Release Crypto Bill Draft In April
April promises to be an exciting month for the crypto community, with the upcoming release of the long-awaited Lummis-Gillibrand crypto bill draft. The bill, drafted by Senators Lummis and Gillibrand, will contribute to regulatory transparency for many cryptocurrency projects, determining which falls under the scope of the SEC or CFTC.
Since the beginning of its existence, the industry has faced ongoing challenges with regulatory uncertainty. Many crypto projects operate on the assumption that they must comply with the same laws and regulations as traditional financial institutions.
The bill, which has been in the works for months, is seen as a breakthrough for the crypto industry.
Senator Gillibrand Seeks CFTC Chair’s Perspective On Crypto Regulatory Bill
During a hearing on Commodity Futures Trading Commission oversight held by the Senate Agriculture Committee earlier this week, Senator Gillibrand asked the chair of the CFTC, Rostin Behnam, for his opinion on the crypto bill.
Gillibrand declared that the bill’s full version would be available in mid-April. She and Senator Lummis had previously designed to form a regulatory structure for the crypto industry.
Gillibrand commented that the aim is to start a national discussion about a comprehensive approach to digital assets. She opined that the SEC should regulate digital assets that function as securities.
However, the CFTC should oversee commodities with entity-like qualities. Behnam stated that Gillibrand and Lummis had thoroughly considered every aspect of the crypto sector in the updated version of the bill, citing issues with stablecoins and cyber safety.
CFTC Chair Warns Of Necessary Asset Segregation
The crypto industry experienced a dramatic upheaval after introducing the earliest version of the Lummis-Gillibrand bill in March 2022. Some industry analysts claim that the bill caused the fall of firms such as BlockFi, FTX, Terra, Voyager Digital, and many others.
Meanwhile, the CFTC chair further noted that due to what they observed with FTX, it is essential to ensure adequate asset segregation and eliminate customers’ conflicts of interest. She added that further questions need answering regarding digital assets, such as those concerning cybersecurity, vendor risk, and third-party service providers.
Despite the bipartisan efforts of Democratic Senator Gillibrand and Republican Representative Lummis to introduce a crypto bill, it is uncertain whether the new Congress will take action on the proposal. Lummis stated in July that the bill was “a lot for them to digest,” which implies that several legislators may have difficulty understanding it.
If approved by both chambers and signed into law, the legislation would clarify the SEC and CFTC’s oversight roles over various crypto projects. The Lummis-Gillibrand bill is a significant step forward for the crypto industry, providing much-needed guidance and certainty to many crypto projects is expected.
It helps these projects better understand their legal obligations and the potential repercussions of non-compliance.
Tokenhell produces content exposure for over 5,000 crypto companies and you can be one of them too! Contact at info@tokenhell.com if you have any questions. Cryptocurrencies are highly volatile, conduct your own research before making any investment decisions. Some of the posts on this website are guest posts or paid posts that are not written by Tokenhell authors (namely Crypto Cable , Sponsored Articles and Press Release content) and the views expressed in these types of posts do not reflect the views of this website. Tokenhell is not responsible for the content, accuracy, quality, advertising, products or any other content or banners (ad space) posted on the site. Read full terms and conditions / disclaimer.
