Crypto News
| Published On Mar 28, 2022 9:02 am CEST | By Peter Siu

US Senators Working on Comprehensive Framework to Regulate Crypto Industry

Share

A bi-partisan cooperation to provide clarity on cryptocurrencies has emerged with U.S. Senators Kirsten Gillibrand (D-N.Y.) and Cynthia Lummis (R-Wyo.) working together on “a broad-based regulatory framework” for the crypto industry.

Noting that they are talking to stakeholders, regulators, and industry experts to get the broadest understanding, the two elaborated on their plans last Thursday at a Politico Live event. Senator Gillibrand explained:

“The work we’re doing is going to be a very complex and intensive review of the different aspects of this industry.

Some will be regulated under the CFTC [Commodity Futures Trading Commission], some parts will be regulated under the SEC [Securities and Exchange Commission], some we will need to look at more broadly and we intend to have a regulatory commission that can look at these issues of first impression and make judgments and guidance.”

When asked whether the CFTC will have a more prominent role under the new crypto framework, Senator Lummis responded:

Get 125% / $2,500 on 1st deposit!
New players only. Exclusive Welcome Bonus of up to $2,500
Casino & Sports

“The answer is definitely yes. When you look at Bitcoin and Ethereum in particular, it’s pretty clear to me that those are commodities.”

The Wyoming pro-bitcoin senator added that the SEC will become a key player in the spaces and that since there are currently over 18,000 cryptocurrencies, not all of them are commodities:

“So, we’ll still be using the old Howey Test from the 1940s which helps define what’s a security and what’s a commodity.”

Stressing the importance of their proposal, Senator Gillibrand stated:

250% Extra + $125 Free Chip!
New players only. 250% on 1st Deposit + $125 Free Chip
Casino

“Many of the goals that Senator Lummis and I have are identical. We want to address things like safety and soundness. We want to address consumer protection. We want to address certainty for markets.”

It is unsure when the bill is expected to be introduced and if it has a chance of being passed this year. For now, the senators’ intentions are to work hard over the next couple of weeks and make sure all challenges and details are included, they said.

Whether the plans include a recommendation of the U.S. Federal Reserve to buy Bitcoin, remains to be seen. A month ago, Lummis suggested the institution should be stacking up on the top cryptocurrency, saying:

“I think it’s a great idea, to be honest, and I think that once there is a statutory and regulatory framework, that will make a lot of sense. The fact that it is completely decentralized is going to make it over time more ubiquitous, and I think it’s going to be something that the Fed should hold on its balance sheet.”

Peter Siu

Peter is a former poker-pro, turned crypto enthusiast with 8+ years’ experience in operational roles dealing with all online gaming verticals within large iGaming companies, including Flutter and Entain. Now an expert in the field of Sports Betting, Casino, iGaming, and Poker, he is our team leader and editor. When not working, Peter can be found in the gym or playing sports like football, tennis and more recently padel.