The US Senate Will Consider A New Bill of Crypto Regulation

The US Senate will consider a bill called the Responsible Financial Innovation Act, which will introduce legal terminology for digital assets and virtual currencies, as well as define the powers of agencies to oversee the crypto industry.

US Senators Cynthia Lummis and Kirsten Gillibrand have submitted the bill to Parliament, according to The Washington Post.

If passed, the bill would require cryptocurrency service providers to disclose information so that consumers can make informed decisions.

According to Senator Kirsten Gillibrand, the bill establishes a regulatory framework that encourages innovation, develops clear standards, defines appropriate jurisdictional boundaries, and protects consumers.

But Adam Cochran, a partner at Cinneamhain Ventures, believes that while the legislation will bring clarity to the US crypto industry, it could lead to huge costs and growth problems for the industry as a whole.

More than others, he was interested in the provisions of the bill on the need for legal registration of DAOs, exchanges and issuers of stablecoins. The specialist also noted that stablecoin operators are actually equated in regulation with traditional financial institutions with the obligatory presence of provision with reserves and other encumbrances.

In addition, Cochran is concerned about strict disclosure requirements and strict exchange supervision measures.

In his opinion, the first will bring significant difficulties for DeFi projects, while other requirements will increase the costs of crypto companies and exchanges. But in the end, the quality of the listing and consumer protection can be improved.

The expert noted among the positive points that most cryptocurrencies will fall under the jurisdiction of the CFTC as digital commodity assets.

Cochrane added that the law would not necessarily be passed in its current form, if at all, but if it did, the big players in the market would win in the long run, and 99% of the market would likely have to go through a “painful period.”

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