Security or Commodity? New Crypto Legislation to Provide Clarity
Sen. Cynthia Lummis (R-WY) and Sen. Kirsten Gillibrand (D-NY) will introduce on June 7 the Responsible Financial Innovation Act, which proposes integrating digital assets formally into the American financial systems.
With bipartisan backing and thorough effort, this proposed legislation looks to effectively integrate digital assets into the modern economic structures and potentially secure a much brighter future for Bitcoin and cryptocurrencies. The legislation endeavors to ameliorate the formal adoption of Bitcoin and cryptocurrencies into hedge funds, wealth funds, governments, corporations, banks, and other companies.
Any attempt at comprehensive regulation and legislation on cryptocurrencies has seen a clash between conservative and liberal mindsets. Conservatives emphasize the importance of establishing regulatory models to ensure safeguards around digital currency adoption. On the other hand, liberals have propagated the urgent need for innovation that can only be facilitated through cryptocurrency adoption.
This proposed act is a result of all-encompassing work that will define coins that serve to be securities and commodities; outlining stablecoins, both algorithmic and asset-backed; as well as including NFTs in its purview.
A few weeks ago there was a discussion hosted by the Heritage Foundation on Bitcoin BTC and numerous cryptocurrencies. The Heritage Foundation’s meeting was fuelled by bipartisan support, further enhanced by minds such as MicroStrategy Incorporated MSTR CEO Michael Saylor to provide critique and expertise.
According to Politico, the lobbying for this bill has been further propelled by venture capital, blockchain-based startups and other corporate beneficiaries. Venture firm executives, such as Andreessen Horowitz, have further supported the dialogue on this bill and its pressing need in today’s economic and political climate.
The presentation of new rules for cryptocurrency regulation, investor protection, transparency and security will ignite much-needed dialogue in the corporate and political worlds.
In its totality, what this proposed legislation represents is of great significance, not only to the crypto community but to the domains of politics, banking, technology and all other micro and macro parties that seek to benefit from digital currencies being integrated into corporate and institutional structures.