Senators Introduce Bipartisan Bill to Regulate Cryptocurrencies

Have legislators found common ground on cryptocurrency?

Sens. Cynthia Lummis (R-Wyo.) and Kirsten Gillibrand (D-N.Y.) introduced legislation Tuesday to create a regulatory framework for the cryptocurrency markets. It's the first major bipartisan cryptocurrency legislation, and would classify digital assets as commodities like gold and natural gas. If the bill passes, the Commodity Futures Trading Commission (CFTC) would be responsible for regulating most of the industry. The bill would also make buying goods or services under $200 with crypto tax-free, and would walk back a provision from last year’s infrastructure bill that placed heavier taxes on crypto miners. The senators' offices said the bill would encourage "responsible financial innovation, flexibility, transparency and robust consumer protections while integrating digital assets into existing law." 

The announcement comes as the cryptocurrency market has lost nearly $2 trillion in value in the last six months. Some crypto skeptics said the bill doesn't focus enough on cybersecurity and is too light on regulation. One crypto advocate told TIME Magazine that the bill's compliance standards would put "undue burdens on emerging startups, smaller players and international entities."

News sources from left to right described the proposal as "sweeping" and highlighted its bipartisan nature. Some sources pointed out that the bill is unlikely to pass in the near future, as it has to pass at least three different Senate committees before going to the full chamber for a final vote.