Sens. Gillibrand, Lummis Introduce Major Cryptocurrency Bill

Sens. Kirsten Gillibrand (D-N.Y.) and Cynthia Lummis (R-Wyo.) introduced legislation this week that will create a regulatory framework for digital assets such as cryptocurrency. 

The Responsible Financial Innovation Act (RFI) will encourage innovation in the financial sector, as well as flexibility, transparency and robust consumer protections while integrating digital assets into existing laws. 

The proposed legislation will also assign regulatory authority over digital asset spot markets to the ??Commodity Futures Trading Commission (CFTC), which regulates commodities markets, creating a new advisory committee that will focus on developing guideline principles, empowering regulatory agencies and advising lawmakers on fast-developing technology. 

The lawmakers also said the RFI bill will create a workable structure for the taxation of digital assets and cryptocurrencies and will provide a regulatory sandbox for state and federal regulators to collaborate on innovative financial technologies among other provisions, according to the statement. 

This comes as lawmakers have been trying to figure out ways to regulate cryptocurrency without affecting it greatly, as the crypto industry has looked into this type of legislation as a way for federal regulators to update the ways they oversee the financial system which will benefit cryptocurrencies and exchanges.

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