Amid crypto turmoil, senators propose sweeping oversight

WASHINGTON – A bipartisan pair of senators has unveiled the most far-reaching proposed legislation to regulate cryptocurrencies and other digital assets after a series of high-profile busts and misses.

However, it is unclear whether the bill proposed by Sens. Kirsten Gillibrand, DN.Y., and Cynthia Lummis, R-Wyo., can clear Congressional hurdles, especially at a time of heightened partisanship ahead of the midterm elections. The bill also comes as cryptocurrency advocates have grown – and more issues free — Players in Washington.

The bill presented on Tuesday, called the Responsible Financial Innovation Act, proposes legal definitions of digital assets and virtual currencies; would require the IRS to adopt guidelines on merchant acceptance of digital assets and charitable contributions; and would distinguish between digital assets that are commodities or securities, which has not been done.


The bill “provides regulatory clarity for authorities tasked with overseeing digital asset markets, provides a strong, tailored regulatory framework for stablecoins, and integrates digital assets into our existing tax and banking laws,” Lummis said in an e-mail. Mail sent statement. Stablecoins are a type of cryptocurrency pegged to a specific asset, typically the US dollar, another currency, or gold.

Lummis has been vocal about cryptocurrency development, investing between $150,002 and $350,000 in Bitcoin, according to her financial disclosure.

The legislation imposes disclosure requirements on digital asset companies to ensure consumers can make informed decisions, delineates agencies’ responsibilities for various digital assets — such as the Commodity Futures Trading Commission’s jurisdiction over Bitcoin — and requires a study, among many other proposals on the energy consumption of digital assets.


The bill comes at a turbulent time for cryptocurrencies, including the collapse of the terraUSD stablecoin and Luna, the coin intended for buying and selling assets that has traded at less than a ten-thousandth of 1 cent.

Gillibrand said the bill creates “a regulatory framework that drives innovation, develops clear standards, defines appropriate jurisdictional boundaries and protects consumers.”

These developments have prompted lawmakers on both sides of the aisle to support legislation that puts more scrutiny on digital assets.

And crypto lobbying has followed suit. According to records and interviews, industry executives poured money into convention races for the first time this year, spending $20 million.

Cryptocurrencies have their supporters in Congress. Sen. Cory Booker, DN.J., speaking at the DC Blockchain Summit in Washington last month, said he is drawn to “the exciting potential democratizing effect that can come from creating broader opportunities for marginalized communities.”


Despite the risks, surveys show that about 16% of adult Americans, or 40 million people, have invested in cryptocurrencies. And 43% of men aged 18-29 have invested money in cryptocurrency.

African Americans are also more likely to invest in cryptocurrencies than white consumers.

President Joe Biden signed one supreme command in March, he asked the Federal Reserve to examine whether the central bank should create its own digital currency and directed federal agencies, including the Treasury Department, to study the impact of cryptocurrency on financial stability and national security.

This was announced by Treasury Secretary Janet Yellen an April speech at American University that more government regulation is needed to monitor the proliferation of cryptocurrencies and deter fraudulent or illegal transactions.


“We have a strong interest in ensuring that innovation does not fragment international payment architectures,” she said, adding that the Treasury Department will work with the White House and other agencies to develop reports and recommendations on digital currencies.


Associated Press writer Ken Sweet in New York contributed to this report.

Copyright 2022 The Associated Press. All rights reserved. This material may not be published, broadcast, transcribed or redistributed without permission. Amid crypto turmoil, senators propose sweeping oversight

Sarah Y. Kim

InternetCloning is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – The content will be deleted within 24 hours.

Related Articles

Back to top button