Republican and Democrat Senators Collaborate on Favorable Crypto Legislation Push 

Republican and Democrat Senators Collaborate on Favorable Crypto Legislation Push. 

Two United States senators from rival political parties are collaborating on pushing for new legislation for the country’s cryptocurrency industry. 

Republican Senator Cynthia Lummins’ push for a cryptocurrency law has attracted the support of a Democrat who believes in fostering the growth of the nascent digital currency industry. 

Bloomberg reports today that Kirsten Gillibrand, a New York Senator from the Democrat party, disclosed that she would join Senator Lummis of Wyoming to introduce favorable legislation in the coming weeks. 

The Senators tip the upcoming crypto legislation to focus on diverse issues related to the cryptocurrency industry, including consumer protection, privacy, taxes, and banking. 

Gillibrand said: “The work we are doing is going to be a very complex and intensive review of different aspects of [the cryptocurrency] industry […] I think we might be able to get a vote, maybe by the end of the year.” 

Contradictions Between the SEC & CFTC

While Gillibrand is a member of the Senate Agriculture Committee that oversees the Commodity for Futures Trading Commission (CFTC), Lummis is a member of the Banking Committee in charge of the Securities and Exchange Commission (SEC). 

It is worth noting that both the SEC and the CFTC share jurisdiction over the regulation of cryptocurrencies. 

In the United States, there have been calls by industry experts for regulatory bodies to provide clarity to the laws governing cryptocurrencies. 

The lack of regulatory clarity has led to various charges slammed by the SEC on crypto-related businesses. One of them is Ripple, a company that has been in a long-term lawsuit with the agency. 

Other Details of the Legislation

According to reports, SEC chairman Gary Gensler noted that he thinks most cryptocurrencies are securities. At the same time, CFTC chair Rostin Behnam disclosed recently that the commission, which focuses on the derivatives market, will take on more roles in crypto regulations.  

Following the unclear focus of the CFTC and the SEC, lawmakers noted that the bill would address most of these issues. 

The lawmakers added that the bill would grant additional powers to the CFTC to regulate cryptocurrencies while the SEC continues to play its role. 

Notably, the bill will not change how both federal regulatory agencies determine a regulator with authority over existing crypto assets. 

Notably, the definition of who a cryptocurrency broker is will be altered in the coming legislation to address the issues surrounding tax reporting requirements.