Crypto bill introduce by US senators Cynthia Lummis and Kirsten Gillibrand were one of the most proactive cryptocurrency regulation proposals in the United States. However, the pro-crypto regulatory framework seems to will not see any light this year, as it has been put on the back burner. This comes as the United States congressmen are continuing procrastinating.
Cryptocurrencies are yet new for many senators
Cynthia Lummis, Wyoming Senator, has highlighted recently, that the scenario does not show that their introduced bill will receive votes by the end of 2022. In an interview with Bloomberg, she also claimed that the topic is yet new for many lawmakers in the nation. Hence, the wide ranging scope of the proposal could potentially make things more difficult to digest for now.
Crypto as commodity
The proposal of US senators Cynthia Lummis and Kirsten Gillibrand aimed to protect digital assets to investors without stifling innovation. According to the bill, the US Commodities and Futures Trading Commission (CFTC) should regulate virtual assets and treat those as commodities with more lenient rules and regulations. Hence, the bill is being opposed by the US SEC, who wants his agency to control the decentralized industry. Notably, SEC wants that the crypto firms should act similar to other financial institutions in the traditional infrastructure.
The legislation could undermine traditional financial industry
According to the Securities and Exchange Commission chair, the new regulation being proposed by the senators can potentially undermine the tradition infrastructure, which is valued more than 100x in comparison to the digital ecosystem. It is also worth noting that some crypto critic lawmakers has been pushing for, as they think digital currency mining companies are killing our planet by using heavy electricity. Last week, about six senators wrote to the EPA and the DOE demanding cryptocurrency mining farms should report their power usage.
The scenario, confirms that the wheels of bureaucracy turns very slowly in the nation.
Cryptocurrency bulls are back
Geopolitical and regulatory concerns were forcing the market to plunge, but now it seems that the uncertainties are being ignored. Bullish market sentiment is back for the first time over the past five weeks. Major large cap assets like the prominent coin and the second largest cryptocurrency are witnessing multi-week highs. Furthermore, the overall market capitalization has again potentially surpassed the benchmark level of a trillion dollar.
Still, macroeconomic concerns are shining, with high interest rates and other economic pressure for which miners facing capitulation.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.