Depending on what side of the Crypto Coin you’re on, Crypto legislation may be good or bad for business. Purists believe it should stay as originally intended… Decentralized. While many others feel that without guaranties from governments and Banks backing it, it may backslide into the abyss. I for one feel that crypto can never achieve its full potential without the green light of governments. Not that I have complete trust of governments but there are manipulations of the crypto markets already and people are losing money cause of the actions of others. There are already instances of altcoins that were hacked and hijacked of millions which caused the alt coin to collapse.
A new crypto bill is making its way around political circles this week, and it’s one of the most exciting pieces of legislation yet. Crypto investors will be particularly happy about the details of the bill, seeing as it is sponsored by some of the most pro-crypto lawmakers in Congress. Moreover, it seeks to remove regulative authority from the notoriously bearish Securities and Exchange Commission (SEC).
Unlike dollar bills and coins, cryptocurrencies are not issued or backed by the U.S. government or any other government or central bank. The lack of a physical token to count and hold may confuse some. Rather, Bitcoin and other cryptocurrencies are a form of digital currency used in electronic payment transactions—no coins, paper money or banks are involved; there are zero to minimal transaction fees; transactions are fast and not bound by geography; and, similar to using cash, transactions are anonymous.
U.S. Securities and Exchange Chairman Gary Gensler has won the ire of many in the crypto community by arguing that the vast majority of digital tokens are securities and that their issuers are violating the law by not registering with the agency.
Republican Sen. Cynthia Lummis of Wyoming said Tuesday “I agree with him” on this point, during a live interview with the Washington Post. The interview, which also featured Democratic Sen. Kirsten Gillibrand, was conducted a day after the pair introduced a comprehensive legislative framework for regulating digital assets.
It all looks promising but, with all things that have great value there will be an argument as to who will oversee it. The SEC and the CFTC both arguing there points as it either being commodities or securities. Most want the CFTC to oversee it as the SEC has taken an aggressive posture toward crypto interests. The CFTC already regulates futures contracts for bitcoin and ethereum, the two most popular cryptocurrencies. But the new proposal would give the agency wider power by handing it oversight of the crypto spot market as well — and envisions that market including a wide array of digital coins. The bill would create a process for crypto trading platforms such as Coinbase to register with the CFTC.
The CFTC is far smaller than the SEC, with about a sixth of its budget. The bill, dubbed the Responsible Financial Innovation Act, would address that resource gap by allowing the CFTC to assess a fee on the companies it oversees. Advocates of tougher crypto regulation nevertheless argue that investors stand to suffer if the SEC is forced to take a back seat.
Crypto industry sources said they expect the bill’s introduction to kick off a prolonged legislative process, one that will almost certainly extend into next year and is likely to result in major revisions. At least four Senate committees could claim jurisdiction over pieces of the measure.