The U.S. has drafted new legislation for crypto regulation. There are striking details in the new crypto proposal from US Senators.
Following the collapse of crypto coins since last month, steps for crypto regulation have been accelerated all over the world. The new bipartisan initiative (Republicans and Democrats) in the US Senate laid out what the US government needs to do to regulate crypto.
New draft law for cryptocurrency regulation
Two U.S. senators signed the Responsible Financial Innovation Act, or RIFA for short. This bill, which addresses all digital assets, including cryptocurrencies, seeks to “incorporate crypto into existing laws without restricting it.”
The new regulation, which has been sent to the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), aims to bring clarity to the world of crypto money. The first prominent proposal of the bill was not to recognize digital currencies as traditional securities, with a few exceptions.
RIFA also aims to address stablecoins. Considering that the crypto market has been disrupted by the collapse of TerraUSD, Senators will evaluate the requirements of stablecoins. However, it is unclear what kind of regulation will be other than the digital dollar.
Another prominent topic in the draft law was the taxation of digital assets. All decentralized entities should be subject to taxation, the report said. This could spell the end of anonymous crypto businesses in the US.
In addition, bankruptcy definitions for crypto money exchanges are on the agenda again. According to RIFA, it should be mandatory for users to receive a return of the deposited assets without liquidation.
The fact that the new bill was signed by both Republicans and Democrats increased the chances of it being adopted. But let’s not ignore that the final decision will be made by the CFTC and the SEC.
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