US Senators Cynthia Lummis and Kirsten Gillibrand have drafted legislation which seeks to establish better regulation across digital assets in the country.
The bill is ambitious in its scope as it will enable the purchases of goods and services for small amounts of cryptocurrency and intends to free these purchases from cryptocurrency taxation.
In other words, the senators propose that anything that costs less than $200 in cryptocurrency should not be taxed.
The legislation also seeks to confer new powers onto the Commodity Futures Trading Commission (CFTC).
The proposed bill attempts to bring clarity in a debate that has been dominated by skepticism. Named the Responsible Financial Innovation Act, the legislation features several key elements that may help the US to adopt cryptocurrencies more aggressively and safely.
The bill wants to delineate between cryptocurrency securities and commodities, which is the issue that caused Ripple Labs and the US Securities and Exchange Commission (SEC) to be at each other’s throats.
It also wants to create an ancillary asset class that would be monitored by the CFTC. The CFTC would also have authority over sport markets in crypto communities, for example.
The bill sponsors say that through this bill, much-needed legal clarity can finally be delivered to the sector. It also lays the groundwork of what to do if a company goes bankrupt.
Coinbase, which posted $430m in losses over its first quarter this year, revealed a rather worrying financial report to the SEC.
Nobody knows what would happen if Coinbase, the first publicly listed cryptocurrency exchange, was to go belly up. Coinbase has of course dismissed such concerns.