A new crypto bill is making its way around political circles this week, and it’s one of the most exciting pieces of legislation yet. Crypto investors will be particularly happy about the details of the bill, seeing as it is sponsored by some of the most pro-crypto lawmakers in Congress. Moreover, it seeks to remove regulative authority from the notoriously bearish Securities and Exchange Commission (SEC).
The last three months have seen crypto talk among lawmakers pick up significantly. Digital money has remained a key priority when it comes to new financial policy, especially as the public continues to embrace the largely-unregulated asset class. By the end of the year, it is expected that nearly 13% of the American population will own a crypto asset.
With this in mind, investors have see the early steps of crypto policy fall into place. President Joe Biden’s executive order on crypto is one of the most notable orders of his term thus far. In it, Biden prioritizes research into various corners of the cryptocurrency market. Policymakers will be able to weigh the data when considering U.S. crypto infrastructure. It also entertains the idea of a U.S. central bank digital currency (CBDC).
In the wake of the executive order, investors have seen more than 50 crypto bills crop up. These bills also cover a variety of issues surrounding the market, from financial regulations to stablecoins to environmental regulations.
Local governments are setting their own precedents for the industry as well. New York, for example, has advanced a crypto mining moratorium to the desk of Governor Kathy Hochul. However, today’s legislation is perhaps the biggest yet. It sees a major crypto bull finally advancing their own bill on how to approach crypto regulation.
New Crypto Bill Cedes Crypto Regulatory Authority From SEC
This week’s new crypto bill is the long-awaited proposal from Senator Cynthia Lummis. Lummis, one of the most vocal crypto bulls in Congress, has been one of the industry’s biggest hopes for market friendly regulations. The bipartisan bill, co-sponsored by Senator Kristen Gillibrand, is perhaps the most notable regulatory proposal thus far.
The biggest aspect of the bill, which is being brought to Congress today, is a sweeping change to the SEC’s authority over digital assets. Specifically, the bill would remove regulatory authority from the SEC and give it to the Commodity Futures Trading Commission (CFTC) instead.
In transferring this authority, the bill would also introduce the term “ancillary assets” to the Securities Exchange Act of 1934. The bill defines this as an “intangible, fungible asset” provided to buyers of securities which constitute investment contracts. The definition does not extend to assets with rights to profits; as Decrypt reports, it would apply to most of the top cryptocurrencies on the market today.
Another major aspect of the bill includes a tax exemption for capital gains of under $200. In an effort to make the market more transparent, many government bodies are preparing reporting requirements on nearly all crypto transactions. Exchanges argue strict reporting regulations would be near-impossible to maintain. This part of the bill would do well to make reporting easier on behalf of these companies.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.