Sen. Lummis Hinted at a Future Crypto Law, Saying that NFTs Would Not Be Include

Senator Lummis emphasized the necessity of definitions and filtering out nonviable cryptocurrencies in preparation for her entire cryptocurrency bill.

Senator Cynthia Lummis

On Tuesday, US Senator Cynthia Lummis went on a Livestream organized by Axios to unveil the much-anticipated bill she is drafting on bitcoin. Rather than presenting it all at once, the measure will be split down into five or six pieces and sent to the relevant congressional committees for review, according to the Wyoming Republican.

It is believed that Lummis and New York Democrat Kristin Gillibrand would present a ” structured measure such that it functions inside the usual framework for administering and managing traditional assets,” according to Lummis. The Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) will share monitoring of cryptocurrencies (SEC). “When anything comes inside the Howey Test, that makes it a security,” Lummis added, referring to the Supreme Court judgment on the definition of security from 1946.

Regulators, according to Lummis, need to be able to “discern the wheat from the chaff” when it comes to cryptocurrencies and consumer trust. As a result, crypto will be able to be used for payments, and 401(k) retirement savings packages will be able to include the asset class.

Because “digital assets are nonpartisan,” a Wyoming senator predicted the bill would pass. Despite its complexity, she expressed optimism that it will pass through the legislative process more rapidly than anticipated, citing that government agencies already “make regulatory judgments on the fly.”

According to Lummis, the executive order issued by Vice President Joe Biden on ensuring held to account development of digital assets “dovetailed pretty nicely” with the bill’s proposals, even though the bill differs from the president’s regulatory vision in that it would permit non-bank entities to issue stable coins. She went on to say that lawmakers will consult with the business sector to develop a stable coin regulatory framework.

Lummis said that the law touches on a central bank digital currency (CBDC) without delving into specifics. This legislation will not handle non-fungible tokens and environmental concerns. According to Lummis, it is challenging to classify NFTs. According to her, after the law is passed, authorities will be allowed to determine whether or not to regulate them.

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