- Wyoming Senator Cynthia Lummis said the bill she was preparing intended to cryptocurrencies regulated in the same categories as traditional assets
- She said, NFTs are difficult to categorize and will therefore not be dealt with in the forthcoming bill
Wyoming Senator Cynthia Lummis has revealed more details about the proposed pro-crypto regulatory framework, which she is expected to present in conjunction with Democratic New York Senator Kristin Gillibrand.
In an interview with Axios published earlier this week, the US Senator explained that the upcoming law would regulate from an angle so that digital assets fall under the same categories that regulate traditional assets. Lummis explained that the bill would split the regulatory “magic wand” and share it between the Commodity Futures Trading Commission (CTFC) and the Securities and Exchange Commission (SEC).
“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.”
Pro regulation, pro innovation
The Republican senator also announced that the proposed framework does not go in the direction of curbing innovation, but will include a mandate to protect users. Lummis stated that she is committed to a framework in which stakeholders “understand the traffic rules, but still be able to innovate.”
She added that the current lawless state of affairs in the crypto industry is what has forced regulators, including the SEC, to make ad hoc decisions regarding crypto and decentralized sector regulation issues.
NFT are left out
The Wyoming Republican confirmed that the bill would not cover non-fungible tokens (NFTs), saying: “it’s so hard to figure out how to categorize them.” However, she reckons regulators should help figure out where these tokens can be deployed as they become even more common. The confusion stems from the fact that while NFTs can be traded, most are purchased as rare works of art and therefore cannot be regulated as utility tokens.
She also mentioned a central bank digital currency but didn’t go into specifics.
Regarding the eventual submission of the bill, Lummis was optimistic that he would quickly climb the legislative ladder as digital assets are impartial.
Source: Crypto News Deutsch