On Tuesday, June 7, 2022, Cynthia Lummis, a Republican senator and rancher from Wyoming, and Kirsten Gillibrand, a Democrat senator and securities lawyer from Albany, New York, will introduce the Responsible Financial Innovation Act[1]. This bill is a broad, sweeping attempt to regulate bitcoin and other cryptocurrencies.
In Lummis’ words[2], the bill will "fully integrate digital assets into [the] financial system" and bring order to the crypto space.
This is no small feat and has taken many hours consulting with industry and mining representatives to produce legislation that Lummis says[3], “We hope hits the sweet spot between regulation that is clear and understood and does not stifle innovation.”
“We can’t overregulate,” adds Lummis. “If we overregulate, it [Bitcoin innovation] will go to other countries.”
The legislation will clarify the roles of the two existing regulators, the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), and will clarify that miners are free from being broker-dealers.
The legislation builds on top of the current regulatory regime for assets without creating any more regulatory bodies.
“Even the regulators are waiting to see our legislation move forward,” says Lummis. She’s confident they will want as much clarity as possible.
Cleaning Up A Mess Of Existing Cryptocurrency Legislation
Part of the new bill’s mission is to clean up the existing mishmash[4] of bills and legislation (more than 50) that apply to cryptocurrencies, including parts of the Infrastructure Investment and Jobs Act passed last year.
As noted here[5], “Washington’s efforts to oversee digital assets date back to the Obama administration but remain scatter-shot, rife with holes and overlapping jurisdictions.”
No New Agencies: SEC And CFTC Remain In Charge
Despite recent media coverage suggesting
