A group of U.S. senators unveiled a new legislative proposal on Monday evening aimed at establishing a regulatory framework for the cryptocurrency market, which - if passed - would clearly define the regulatory authorities' jurisdiction over this thriving sector, potentially accelerating the adoption of digital assets in the United States.
The cryptocurrency industry has long called for such legislation, viewing it as essential for the future of digital assets in the country and a solution to fundamental challenges that firms in the sector have faced for years.
Key elements of the bill include defining when digital tokens are considered securities or commodities, providing long-awaited legal clarity for the industry.
Granting the U.S. Commodity Futures Trading Commission (CFTC) - the preferred regulatory body for the sector, rather than the U.S. Securities and Exchange Commission (SEC) - authority over spot cryptocurrency markets.
Addressing a banking industry demand, the legislation builds on prior laws that established a regulatory framework for stablecoins or dollar-pegged cryptocurrencies, following concerns that third-party interest payments on these assets could lead to withdrawals from insured banking systems and threaten financial stability.$BTC
