US to have crypto oversight bill in June

Senator Cynthia Lummis, a Republican from Wyoming (left), and Senator Kirsten Gillibrand, a Democrat from New York, onstage during the DC Blockchain Summit in Washington, D.C., US, on Tuesday, May 24, 2022. The summit is gathering the most influential people focused on public policy for digital asset and blockchain innovations, according to the organizers;Image: Valerie Pleasch/Bloomberg via Getty Images

Senators Kirsten Gillibrand (D-NY) and Cynthia Lummis (R-WY) announced at the DC Blockchain Summit that the bipartisan legislation they've been working on would likely be released in June.

The bill would place spot markets and futures under the jurisdiction of the Commodity Futures Trading Commission (CFTC), while crypto would be overseen by the Securities and Exchange Commission (SEC). Crypto mining would also be exempt from broker-dealer regulations, according to the law.

“We are truly committed to creating the type of baseline and framework legislation that will allow this industry to grow, allow it to flourish,” Gillibrand said. “The best thing we can do for all these businesses is to bring clarity.”

Although dozens of bills have been introduced in the House and Senate to regulate the crypto sector, Gillibrand expressed hope that this legislation will have broad bipartisan support and be signed into law before the end of this year or early next. “I’m very optimistic … because this bill has been heavily researched,” she said. ”We’ve talked to stakeholders for over a year. We have tried to incorporate all of the business models and asset classes that have been to date created.”

Lummis said that working on crypto legislation isn't inherently partisan, though she highlighted the importance of getting it right the first time. “I’ve met with [SEC Chairman] Gary Gensler. We’ve kicked this bill around, and he’s a very knowledgeable regulator,” she said. “Behind closed doors, I think he expresses a deep understanding. So, I actually have confidence that the regulatory framework that exists is going to be the right regulatory framework going forward.”

Shashank is the founder at yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash