Two U.S. senators have reintroduced a bill that aims to provide a clear and consistent regulatory framework for cryptocurrencies in the country. The bill, called the Digital Asset Market Structure and Investor Protection Act, was first introduced in July 2021 by Senators Michael Bennet and Cynthia Lummis.
The bill proposes to define digital assets as securities, commodities, or digital asset securities, depending on their characteristics and functions. The bill also seeks to establish jurisdiction and authority for the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) over the crypto market.
The bill also includes provisions to protect investors from fraud and manipulation, such as requiring digital asset transactions to be reported to a registered trade repository, creating a federal digital asset tracing program, and establishing a whistleblower program for digital asset violations.
The bill also aims to promote innovation and competition in the crypto industry, such as creating a de minimis exemption for digital asset transactions, allowing banks to custody digital assets, and facilitating the development of a digital dollar.
The senators said that the bill is necessary to provide clarity and certainty for both investors and innovators in the crypto space. They said that the current regulatory environment is fragmented and inconsistent, which hampers the growth and development of the crypto market.
The bill has been referred to the Senate Banking Committee for further consideration. The senators said that they hope to work with their colleagues and stakeholders to advance the bill and create a robust and balanced regulatory framework for digital assets.