U.S. Senators Cynthia Lummis (R-WY), a member of the Senate Banking Committee, and Kirsten Gillibrand (D-NY), a member of the Senate Agriculture Committee, reintroduced the Lummis-Gillibrand Responsible Financial Innovation Act to create a comprehensive regulatory framework for cryptoassets.
The legislation expands on the bill the senators introduced last year and "adds strong new consumer protections and safeguards to further strengthen the industry against fraud and bad actors, while giving American innovators the chance to thrive."
The legislation "places cryptoassets within the regulatory perimeter, requires all cryptoasset exchanges to register, addresses decentralized finance, safeguards consumers through enhanced disclosures and limits on cryptoasset lending, closes the wash sale loophole and codifies the criteria to determine which cryptoassets are securities or commodities."
It also combats the use of cryptoassets in illicit finance, imposes new penalties for willfully violating money laundering laws, requires stablecoins to be issued by depository institutions and provides appropriations to federal agencies to implement the policies within the bill.
Substantial feedback from stakeholders was incorporated into the legislation, including regulatory agencies such as the SEC and CFTC, experts in illicit finance, technologists and financial institutions.
To read the full bill text, click here.
For a section by section of the bill, click here.
To see what is new in this version of the bill, click here.
The new bill was introduced on 12 July, read and referred to the Senate Finance Committee.