Two senators in the United States on Tuesday introduced a sweeping bipartisan bill that seeks to regulate cryptocurrencies and other digital assets.
However, it is unclear whether the bill proposed by Kirsten Gillibrand, Democrat of New York, and Cynthia Lummis, Republican of Wyoming, will pass Congress, especially in a midterm election year and while cryptocurrency promoters have become biggest — and freest — players in Washington.
The Responsible Financial Innovation Law proposes legal definitions for digital assets and virtual currencies; would require the Internal Revenue Service (IRS), the US tax agency, to adopt guidance on business acceptance of digital assets and charitable contributions; and it would make a distinction between digital assets that are commodities or investments, which has not been done.
The bill “creates regulatory clarity for agencies tasked with overseeing digital asset markets, provides a robust and tailored regulatory framework for stablecoins, and integrates digital assets into our existing tax and banking laws,” Lummis said in a statement. send by email. Stablecoins or stable coins are a type of cryptocurrency tied to a specific value, usually the dollar, another currency, or gold.
Lummis is a cryptocurrency supporter and has invested between $150,002 and $350,000 in bitcoin, according to her financial statement.
The bill comes at a tumultuous time for cryptocurrencies, including the collapse in May of stablecoin terraUSD and luna, the currency meant to buy and sell assets.
Despite the risks, surveys show that 16% of American adults, or 40 million people, have invested in cryptocurrencies.
Treasury Secretary Janet Yellen said in an April speech at American University that more government regulation is needed to police the proliferation of cryptocurrencies and prevent fraudulent or illicit transactions.
Ken Sweet contributed to this report from New York.