Crypto proponent Senator Cynthia Lummis is planning “comprehensive” legislation for digital assets early next year.
According to a report in Bloomberg, Senator Lummis, who has frequently voiced her support of digital asset innovation, will propose a bill that will clarify the regulatory status of the industry and also illuminate which regulatory agency has oversight over different types of crypto. A new entity is expected to be proposed that will involve both the Commodities Future Trading Commission (CFTC) and the Securities Exchange Commission (SEC) that will help outline responsibilities between the two regulators.
Senator Lummis’ website stakes out her high-level position on digital assets:
“Wyoming has pioneered the right way to regulate the new world of digital assets and financial innovation. On the federal level, I am working to ensure that the Federal Government makes financial innovation a priority and adopts sensible, bipartisan regulations that secure America’s financial future. I founded the Financial Innovation Caucus to educate my fellow senators about the vast potential of emerging technologies to promote financial inclusion and build new wealth for all.”
According to the report, the legislation will not only cover regulation but also taxation.
Most industry participants have long desired clear-cut rules for the crypto industry. Currently, regulators apply laws on the books since before the internet existed. Unfortunately, this has led to regulation by enforcement as innovators have sought to leverage new technologies that may improve upon the traditional financial services sector.
SEC Chairman Gary Gensler was expected to lead the way for bright-line rules for digital assets as he previously taught courses on Fintech/Blockchain at MIT. But his tenure has largely been a disappointment for innovators, leaning heavily on investor protection concerns and currying favor of more extreme legislators that view crypto as little more than a chance to conduct illicit activities while fleecing the little guy. If Senator Lummis’ legislation can garner sufficient bipartisan support this may mark a new era of innovation for digital assets while improving services for underserved communities.
