The bill, introduced by Republican Sen. Cynthia Loomis, one of the most vocal defenders of cryptocurrencies in Congress and Democratic Sen. Kirsten Gillibrand, marks one of the most ambitious efforts by lawmakers to put clear guardrails around fast-growing clashes and adversaries. .
The measure stipulates that the CFTC, rather than the Securities and Exchange Commission, plays a key role in regulating crypto products, most of which senators say work more as commodities than as securities. The smaller CFTC is generally seen as a friendlier regulator of cryptocurrencies, as the SEC generally finds that crypto products must adhere to multiple securities requirements.
The bill is not expected to become law at the current session of Congress, with midterm elections only months away, but its framework could serve as a starting point for future debates on how best to monitor these markets.
“We expect this bill to be the starting point for debate next year, regardless of which party controls the House of Representatives or the Senate,” wrote Jarrett Saiberg, an analyst at Cowen Washington Research Group. “The important thing is that there are two-party efforts to introduce crypto into the existing regulatory regime, even if the details are likely to change.
Senators said the bill aims to provide security and clarity in crypto markets, along with consumer protection.
Among other elements, the bill will establish new rules for “stable coins”, which are tokens designed to have a value tied to a traditional asset such as the US dollar. These products have been under considerable pressure recently following the collapse in the value of the high-profile stable TerraUSD coin.
The new bill will require stablecoin issuers to maintain high-quality liquid assets equal to the value of all outstanding stablecoins and make these assets public.