10 Key Points of the Lummis-Gillibrand Crypto Bill | Snell & Wilmer

On June 7, Senator Cynthia Lummis (R-WY) and Senator Kirsten Gillibrand (D-NY) unveiled the long-awaited 69-page draft of the Lummis-Gillibrand Responsible Financial Innovation Act (“Act”). The Act is meant to create a regulatory framework for digital assets, pioneer legal reform and regulation across various regulatory entities, and update current laws with language regarding digital assets. All cryptocurrency industry participants should consider the following 10 key points of the Act.

1. Attempts to create a standard for determining which digital assets are commodities and which are securities

The Act helps classify digital assets as securities or commodities. The Act makes this determination by analyzing the purpose of the asset and the rights and powers the asset conveys to the consumer, which will help provide digital asset companies with the ability to determine their regulatory obligations.   

2. CFTC gains regulatory authority over digital asset spot markets  

The Act vests the Commodity Futures Trading Commission (CFTC) with regulatory authority over digital asset spot markets based on the drafters’ understanding that most digital assets are similar…

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