US Senate’s New Crypto Bill Challenges SEC, Favors CFTC

Republican Senators Tim Scott and Cynthia Lummis introduced a new bill to clarify crypto regulations in the U.S., defining the roles of the SEC and CFTC. The bill aims to allow crypto exchanges to register with the CFTC, countering the SEC’s control, while including rules to prevent illegal activities. The Senate Banking Committee is set to hold a hearing on the bill soon, marking the next step in U.S. crypto regulation discussions.

In an attempt to reshape the landscape of cryptocurrency regulation in the United States, Republican Senators Tim Scott and Cynthia Lummis have unveiled a new bill. This proposed framework aims to clarify the classification of digital assets, distinguishing between those that are considered securities and those deemed commodities. The shift in focus would mean that the SEC, which traditionally regulates securities, could relinquish some of its hold, while the CFTC would take on a more prominent role for crypto exchanges.

The bipartisan effort has gained traction, with Senators Thom Tillis and Bill Hagerty lending their support. Key provisions of the bill are designed to combat illicit activities, such as money laundering, and to ensure compliance with international sanctions. As these lawmakers push for more definitive guidelines, they hope that collaboration across party lines can hasten clarity around crypto regulations.

Scott emphasized the importance of this bill as a foundation for future legislative discussions. He expressed optimism that bipartisan cooperation could pave the way for resolving long-standing issues surrounding crypto governance. Last week’s Senate approval of a separate, bipartisan measure on stablecoins—backed by nearly all Republican senators and 18 Democrats—was seen as a hopeful sign.

Adding to the momentum, Senator Lummis insists that while progress has been made, this new proposal is merely the starting point for addressing the larger challenges regarding digital asset market structure. The conversation is evolving quickly, especially as figures like former President Donald Trump weigh in, calling for the House to act swiftly on the stablecoin legislation via Truth Social.

On the other side of the aisle, House Financial Services Chairman French Hill has indicated a desire to have both the stablecoin and the broader market structure bills advance together.

Looking ahead, the Senate Banking Committee’s subcommittee on digital assets is set to hold a high-stakes hearing about this new legislation on Tuesday at 3 p.m. ET. This could mark a pivotal moment in establishing a more structured regulatory framework for cryptocurrencies in the U.S. The dialogue is heating up, and many stakeholders are keenly watching to see how this unfolds.

In summary, the introduction of this new cryptocurrency bill by Senators Scott and Lummis marks a significant move towards establishing clearer regulatory definitions for digital assets in the U.S. By delineating between securities and commodities, and favoring the CFTC’s oversight of crypto exchanges, the legislation could redefine the power dynamics in the regulation of cryptocurrencies. The forthcoming hearing could be crucial in determining the future path for cryptocurrency legislation.

Original Source: www.cryptotimes.io