Bill Aims to Clarify Regulations
Rep. Kirsten Gillibrand, co-sponsor of a revised version of the US bipartisan cryptocurrency bill announced in June last year, is expected to be submitted to the US Senate in mid-April. clarified.
The Responsible Financial Innovation Act (RFIA), a bipartisan effort by Republican Rep. Cynthia Lumis and Democratic Rep. The purpose is to provide a framework.
connection:What is the Responsible Financial Innovation Act (RFIA) drafted by US bipartisan lawmakers?
The bill focused on establishing a new legal definition of cryptocurrencies, clarifying the role of regulatory bodies, strengthening oversight of stablecoins, and reforming the taxation of cryptocurrencies, but it has not yet been enacted. .
The U.S. Securities and Exchange Commission (SEC) and the U.S. Commodity Futures Trading Commission (CFTC) are at odds over the jurisdiction over cryptocurrencies.
After the bill was announced, SEC Chairman Gary Gensler emphasized the SEC’s oversight powers, saying most cryptocurrencies retain their securities characteristics. On the other hand, CFTC Chairman Rostin Benham is appealing for the strengthening of the authority to supervise the spot market because of the fact that the CFTC has supervised the futures market of virtual currencies. expressed a supportive view of
Gillibrand said the revised version provides more detailed token definitions and clarifications to address concerns about the bill. At a Senate Agriculture Committee hearing on Wednesday, he said about the jurisdiction of the regulatory body:
Digital assets that are securities will be regulated by the SEC, commodity assets will be regulated by the CFTC, and stablecoins will be overseen by the Office of the Comptroller of the Currency (OCC).
It’s also important to have a tax system in place for the industry as a whole, as well as cybersecurity requirements, he added.
Regulation of stablecoins
At the Senate Agriculture Committee hearing, CFTC Chairman Benham testified. When asked by Mr. Gillibrand about his evaluation of the direction of the bill, Mr. Benham said that the announcement of the bill was successful in raising the debate on cryptocurrencies, and that all the elements that make up the market , was considered very carefully.
As for stablecoins, he said he supports the bill’s description of “financial instruments that should be carefully regulated” and that “we believe that stablecoins will become commodities.”
In 2021, the CFTC ordered Tether, which issues the US dollar-denominated stablecoin USDT, to pay a fine of approximately 58.2 billion yen ($42.5 million) due to lack of underlying assets, etc., leading to a settlement. . In response to setting a precedent for such oversight, Mr. Benham said that after legally analyzing and considering Tether’s situation, he came to the conclusion that Tether’s stablecoin was a product, and quickly He said he had moved to crack down on the company and the market.
Activities of the Digital Asset Subcommittee
French Hill, chairman of the U.S. House of Representatives Digital Assets Subcommittee, is keen to create a regulatory framework for digital assets. The Digital Assets Subcommittee (formally known as the Digital Assets, Fintech and Inclusion Subcommittee) was established in January this year as a subcommittee of the Financial Services Commission.
Hill said he plans to work with the House Committee on Agriculture to create a framework for cryptocurrency regulation, which could focus on stablecoins as a first step.
He said the framework has bipartisan support in the House of Representatives. At the same time, he questioned the current administration’s willingness to work constructively with Congress to develop a regulatory framework.
As a result, he expressed hesitation as to whether progress would be made in creating regulations for stablecoins.