- 29 June 2022
- Posted by: Cryptovalues
- Category: Cryptovalues News, World News
Interesting initiative by some US senators who, regarding the regulation of cryptocurrencies, with the aim of taking into account different needs, are seeking feedback from all those with expertise to provide it.
The senators are looking for comments ‘to ensure that the legislation reflects the innovative nature of the industry it regulates’ and this will be possible through the GitHub platform that allows the more than 83 million users to collaborate on software projects, allowing each of them to contribute code to the same project at the same time.
Obviously, it is intended that opinions will come from those with the expertise to provide appropriate feedback, so industry, consumers and stakeholders are being sought to ensure that this landmark legislation reflects the innovative nature of the industry it regulates, while adding confidence and stability for consumers.
Titled the Lummis-Gillibrand Responsible Financial Innovation Act, the bipartisan bill will seek to establish a standard for determining the quality of a digital asset, be it a security or a commodity. Under the current legislation, many cryptocurrencies would be likened to commodities and thus fall under the jurisdiction of the Commodity Futures Trading Commission (CFTC) rather than the Securities and Exchange Commission (SEC).
Meanwhile, among the guiding principles, Bitcoin, Ethereum, and other cryptocurrencies with significant shares of the crypto market would be treated as commodities, gaining the status of ‘ancillary assets’.
Exchanges defined “as entities that trade one or more digital assets” would have to be registered, leaving little room for anonymous projects. There are also plans to raise the cost of transactions by allowing the government to take a cut of all transaction costs, which should serve to protect consumers in the event of an exchange failure with users being entitled to receive all deposited funds. This regulation follows an issue raised by the SEC of Coinbase which raised concerns that consumer funds could be put at risk in the event of an exchange failure.
In the regulation of the digital sector in the USa, the certainty is represented by Senator Lummis of Wyoming, who has always been optimistic and open-minded in favour of Bitcoin, knowing its dynamics and undoubted advantages.