Senator Cynthia Lummis is a pro-crypto politician who has been at the forefront of promoting the official recognition of cryptocurrency in the United States. She recently revealed that she is working on a crypto-friendly regulatory policy to bring order to the crypto industry without stifling innovation.
In an interview with Axios News Media on May 3, the U.S. Senator disclosed some important details about the new bill she is working on and hopes to introduce before 2022.
The bill, according to Lummis, is an adaptation of a legal framework that lumps both cryptocurrency and traditional finance together under the same regulation.
Lummis added that the new crypto bill is designed so that some categories of digital assets fall under the jurisdiction of the Commodity and Futures Trading Commission. And then, when an asset becomes a security asset, it falls under the jurisdiction of the Securities and Exchange Commission.
Crypto Innovation Won’t be Halted
Senator Lummis further confirmed that the bill would not hinder the continuous focus on innovation that the crypto industry is known for. Lummis believes that the crypto industry is too important to be left unattended, considering its huge market capitalization.
The crypto space has too large a prospect to be ignored, and as such, the new bill seeks to accommodate the peculiar creative drive of the industry.
The proposed bill would be a broad legislative framework with detailed categories of digital assets and products, carefully divided into groups among components.
In another development, Lummis mentioned the absence of guidelines from the U.S. Congress concerning cryptocurrencies and decentralized finances, which has led some regulatory bodies like the SEC to make random decisions on the go. Once the new law is passed, the old regulations will be pushed aside to pave the way for the new way of doing things.
No Space for NFT in the New Bill
While further addressing the details of the new bill, Senator Lummis stressed that there would be no room for deliberation about non-fungible tokens at the moment because it would be difficult to categorize them. However, she expects regulatory bodies to study the new and emerging digital assets and know where they should fit in the future.
Since knowledge and understanding of NFTs are not enough for the authorities to make a definite move about their regulations, the best thing is to wait until enough study has been done before a legal decision will be made regarding any restrictions.
Another contending area of NFT is that non-fungible tokens are bought and sold just like traditional art pieces, unlike cryptocurrencies. In contrast, digital tokens seem to function as utility coins in the transaction of goods and services.
Although the bill appears to be different from the one established by El Salvador, it is believed that the content of the statement is handled so that it would serve as the trigger for many countries to take a clue from and regulate crypto activities in their countries.