US Senators Come Together to Provide Framework for Cryptocurrency Regulation

US Senators Kirsten Gillibrand (D-N.Y.) and Cynthia Lummis (R-Wyo.) recently announced they joined forces to produce “a broad-based regulatory framework” to direct all cryptocurrency regulation efforts by US authorities. Speaking at a Politico Live event last Thursday, 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.”

Gillibrand stressed that they were in talks with industry stakeholders, regulators, and experts “so that all voices are part of this legislative process.”

When asked if the CFTC would have a crucial role to play in the proposed crypto framework, Senator Lummis answered: “The answer is definitely yes. When you look at bitcoin and ethereum in particular, it’s pretty clear to me that those are commodities.” She added that “It’s so fabulous to work on this with Senator Gillibrand because she’s on the Ag committee, which has jurisdiction over the CFTC.” The pro-Bitcoin legislator also clarified that “the SEC will also have a huge role in this space.”

US Senators Gillibrand and Lummis Have Identical Regulatory Goals

However, the Wyoming Senator argued that with over 18,000 cryptocurrencies operational in the market today, many of them are likely not to be commodities. She added: “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.”

The Senator also noted that the bill would address stablecoins and central bank digital currencies (CBDC).

Senator Gillibrand asserted: “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.”