Bipartisan crypto overhaul seeks to treat most digital assets as commodities and empower CFTC

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Bipartisan crypto overhaul seeks to treat most digital assets as commodities and empower CFTC
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The Lummis-Gillibrand bill amounts to a regulatory overhaul that would classify the vast majority of digital assets as commodities.

Sens. Cynthia Lummis and Kirsten Gillibrand said Tuesday that they are ready to debut the first major attempt from Capitol Hill to create a regulatory framework for crypto.

The Responsible Financial Innovation Act would empower the Commodity Futures Trading Commission to regulate most existing digital assets.As excited as Wall Street and Main Street were to have crypto as a new investment idea and store of value, the speed at which cryptocurrencies entered mainstream U.S. markets caused proportionate angst for U.S. regulators, who were equipped only with decades-old securities laws to police an industry many still refer to as the financial "Wild West.

Their bill, titled the Responsible Financial Innovation Act, amounts to a regulatory overhaul that would classify the vast majority of digital assets as commodities like wheat, oil or steel. As such, the bipartisan legislation would also leave the bulk of the oversight responsibility to the Commodity Futures Trading Commission and not the Securities and Exchange Commission, as some had expected.

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