Bitcoin, ethereum and cryptocurrency prices are struggling, while fears of new stablecoins are swirling and an economic downturn is dragging out the stock markets.
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The Bitcoin price fell back below the closely monitored $ 30,000 per bitcoin level (although bulls continue to come up with huge price predictions), while the ethereum price fell to below $ 2,000 per ether. The growing threat of a regulatory intervention has towered over the crypto markets since the collapse of two major cryptocurrencies earlier this month.
Now the crypto market is ready for the details of a long-awaited crypto bill made by a two-part group of U.S. senators and led by bitcoin-supporting senator Cynthia Lummis (R-WY).
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“We have made [the crypto bill] so it works within the usual framework of managing and regulating traditional assets, ”said Lummis. Axios earlier this month, adding during a speech to the American Enterprise Institute think tank last week that the details of the bill could become public as soon as this week, and the official bill was presented to Congress in June.
“We will put it in draft discussion and you can spend 30 days helping us get this bill in as good shape as possible before we present it,” Lummis said.
The bill is expected to define whether the various cryptocurrencies are either securities or commodities and which agency will oversee them, either the Securities and Exchange Commission (SEC) or the Commodity Future Trading Commission (CFTC).
Other provisions will cover consumer protection and taxation, but the rules for blockchain-based non-fungible tokens (NFTs), which have become very popular over the past year after being adopted by the arts, entertainment and sports, should not be understood. .
In his speech last week, Lummis suggested that the bill would place stablecoins, such as tether and the algorithmic stablecoin terraUSD (UST), in the securities category.
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“So, for example, bitcoin is a commodity,” Lummis said. Axios. “So it would fall under the CFTC for trading purposes and the spot market and the futures market. And when so [a cryptocurrency] corresponds to the Howey test [which uses four criteria to decide what qualifies as an investment contract] make it a security that falls under the SEC. “
Last week, SEC President Gary Gensler, who has previously pressured lawmakers to step up control of the fast-growing cryptocurrency market, signaled that he agreed with Lummis and said bitcoin “can-be” is “a commodity token”.
Gensler told the House Appropriation Committee that the SEC has “jurisdiction over probably a lot” of cryptocurrencies, but not bitcoin, and said bitcoin will go “over there” to the CFTC.
“I think many of these tokens will fail,” Gensler said after the committee hearing, it was reported by Wall Street Journal. “I fear that in crypto… there are many injured people and that will undermine some of the confidence in the markets and some of the confidence in the markets.”