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Sen. Cynthia Lummis shares details of the crypto law she has been working on

On May 3, US Senator Cynthia Lummis (R-WY) was interviewed by Axios news media and revealed key details about the crypto bill she hopes to introduce before the end of the year.

According to Lummis, the bill adjusts the legal framework so that cryptocurrencies and traditional assets fall under similar regulatory categories.

“We designed it to work within the usual framework for traditional asset management and regulation. For example Bitcoin a commodity. So it would come under the Commodity Futures Trading Commission for trading and spot market and futures market purposes. And then if something fits the Howey test making it a security, it would fall under the Securities Exchange Commission.”

The bill will not curb crypto innovation

Lummis believes the crypto industry, which moves more than $1.8 trillion, must have a regulatory framework that protects users without impeding innovation. According to them, the crypto space is “absolutely amazing”.

The bill will be a comprehensive piece of legislation detailing the various components of crypto assets and commodities. Then he divides this group into five to six different parts on different committees.

“We’re going to present it as one big piece so people can see the big picture, how the commodity components work, with the security components, with the stablecoins, and with the potential CBDC.”

Additionally, Lummis stressed that the lack of congressional guidance on cryptocurrencies and decentralized technologies has meant regulators like the SEC have had to make decisions on the fly. That should change as soon as this law is passed.

Non-fungible tokens (NFTs) are not discussed in the bill

According to Lummis, NFTs are not covered in the bill because, for now, it’s “so difficult to figure out how to categorize them.” However, she expects regulators to help understand where these new digital assets should fit.

After better understanding this type of technology and how it works, it will be possible to know which NFTs should be regulated or not, since unlike cryptocurrencies, many of these assets are sold as if they are unique works of art, while others appear as utility tokens to work.

Therefore, while this law does not have the same adoption intent as that promoted by El Salvador, it is treated with such circumspection that it could likely serve as a spearhead for many other countries to regulate cryptocurrencies.

Source: Crypto News Deutsch

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