US Senators have passed a bill that intends to outline the future of cryptocurrencies.

US Senators Kirsten Gillibrand and Cynthia Lummis reveal plans to remove tax for purchases below $200 and appoint Commodity Futures Trading Commission or CFTC as the one who will regulate cryptocurrency. 

Last Tuesday, Gillibrand and Lummis introduced the crypto bill with the hope of expanding regulations covering digital assets. This is something that the industry lobbyists are going to be making discussions about.

What is the crypto bill?

The legislation intends to wipe away tax problems by ensuring that all purchases below $200 are tax-free. This will allow cryptocurrency to act more like what it really is – a currency. 

The bill also intends to answer the topmost questions related to digital assets. This includes federal law for DAI, Binance, Tether, and other similarly-classified stablecoins and taxing small-scale transactions, as well as regulator jurisdictions. By answering these questions and more, the cryptocurrency sector of finance will finally grow.

However, the plans in the crypto bill will probably not cause some massive shift – at least not this year just yet. The legislation from Gillibrand and Lummis is a combination of other bills that touch some aspects of the whole cryptocurrency marketplace. It borrows the stablecoin push from Senator Pat Toomey’s work as well.

By 2023, the bill will be split into several parts as it navigates through the congressional committees in the coming sessions. The committee will hopefully put key aspects of the legislation in their rightful sections. There is a higher chance for success because Lummis is on the Senate Banking Committee to regulate Securities and Exchange Commission. Aside from that, Gillibrand is on the Agriculture Committee that manages the CFTC and other commodities.

Responsible Financial Innovation Act

Worth noting is the “Responsible Financial Innovation Act” which emphasizes regulatory clarity for agencies by providing a framework for stablecoins. It also intends to make consistent efforts in integrating digital assets into existing bank and tax laws. 

The cryptocurrency legislation will hopefully provide knowledge regarding the ever-evolving digital assets marketplace. Aside from that, all that is relevant to cryptocurrency is made clear to both industry and regulators.

First, it would clearly define cryptocurrency and commodities. This will allow token holders to know know what the asset is for and the rights that it affords them. As it stands, the market according to the bill is dominated by commodities. This includes the crypto giants such as bitcoin, ether, and many more. They would fall under “ancillary assets” and will be regulated by the CFTC.