The pro-crypto regulatory framework proposed by US Senators Cynthia Loomis and Kirsten Gillibrand is unlikely to see the light of day this year.
Wyoming Senator Cynthia Loomis said on July 19 that the US Senate is unlikely to vote on the bill this year.
“It’s a big topic, it’s broad, and it’s still new to many US senators,” she told Bloomberg in an interview.
He said the wide scope of the law could make it difficult for lawmakers to digest quickly. The bill, which was presented in full on June 7, aims to protect investors without stifling innovation.
CFTC vs. SEC for Crypto Control
The law proposes that the Commodities and Futures Trading Commission (CFTC) become the official regulator of cryptocurrencies. Under this agency, they would be treated as commodities with more liberal rules and regulations.
The bill was opposed by Securities and Exchange Commission (SEC) Chairman Gary Gensler, who wants his agency to control crypto because he considers most of them to be securities. This would mean that crypto companies must jump through hoops similar to those that offer stock trading and regular banking.
In June, Gensler said the new law could undermine the traditional finance industry, which is worth a hundred times that of crypto.
The Lummis-Gillibrand bipartisan bill also outlines reserve requirements for stablecoin issuers, acceptance compliance, and energy consumption reporting for proof-of-work miners.
The latter is something that anti-crypto senator Elizabeth Warren is pushing because she thinks crypto mining companies are killing the planet. Last week, Warren and five other senators wrote to the Environmental Protection Agency (EPA) and the Department of Energy (DOE) citing the bitcoin network’s energy consumption and demanding that mining companies report their use.
Loomis said stablecoin provisions in the bill could make their way to the Senate Banking Committee “over the next few months” as they are considered a priority.
The wheel of bureaucracy spins very slowly in the United States, which is still nowhere close to regulating the digital asset industry.
Market rally continues
Despite regulatory uncertainty, crypto markets continue to be bullish this week. With Bitcoin and Ethereum hitting multi-week highs, the total market cap has topped $1.1 trillion for the first time in five weeks.
However, the macroeconomic clouds are still hovering with the Fed rate hike and the announcement of a recession in the United States next week.
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