Bipartisan Senate Bill Aims to Bring Clarity to Crypto Regulation

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A draft bill unveiled by US senators late Monday seeks to create definitive rules for the cryptocurrency industry. This proposed framework is designed to clarify the roles of financial regulators, potentially providing a significant boost to digital asset innovation and adoption.

Industry proponents have long argued that clear federal legislation is essential for the sustainable growth of crypto in the US. The newly introduced draft aims to address core operational and legal uncertainties that have plagued companies in the space.

Key to the legislation is a formal process for determining whether a crypto token is a security, a commodity, or falls under another designation. This long-sought clarity is expected to shape how projects are launched and traded.

The bill proposes to empower the US Commodity Futures Trading Commission with primary oversight of spot cryptocurrency markets. This would establish a clearer regulatory path compared to the current overlap with the US Securities and Exchange Commission.

The legislation also incorporates a technical correction sought by the banking sector. This amendment pertains to the federal stablecoin regulations enacted last year, refining the rules for tokens pegged to the US dollar.