Federal Legislative Proposals

Lummis-Gillibrand Bill 

Lummis-Gillibrand Bill, proposed in June 2022, is officially called the Bipartisan Responsible Financial Innovation Act, it is the first comprehensive regulatory proposition for the digital assets in the United States. It aims to provide regulatory clarity for agencies charged with supervising digital assets markets and a comprehensive framework for digital assets – integrating them into existing tax and banking laws. The legislations intends to spur innovation, develop clear standards, define appropriate jurisdictional boundaries and protect consumers. It defines which assets are commodities and securities by looking at the purpose and use of the asset. The bill also gives the CFTC authority where digital assets are more similar to commodities rather than securities. It also introduces rules on stablecoins – among others, guaranteeing that a stablecoin holder will always be able to redeem the equivalent stablecoin value in dollars, or introducing a framework for banks and credit unions to issue payment stablecoins. Other aspects of the Bill include disclosure requirements on digital asset service providers, a study on digital asset energy consumption, a study on the development of a self-regulatory organization and provides a regulatory sandbox for state and federal regulators to collaborate on innovative financial technologies, as well as creates a structure for the taxation of digital assets. Introduction of the bill would bring about necessary clarity and certainty in the area.

 

McHenry Bill

In November 2021, Patrick McHenry together with Congressman Tim Ryan and a group of lawmakers, introduced the Keep Innovation in America Act. The legislation aims to fix the digital asset reporting provision in existing law and provide legal clarity in order to encourage technological innovators and entrepreneurs. The changes will include an alteration to the section 80603 of the Infrastructure Investment and Jobs Act, which due to a limited understanding of the digital assets ecosystem, stifles innovation and raises concerns of privacy. The new proposal creates an alternative definition of ‘broker’ – capturing only those entities which should qualify under it and promises that a study be conducted on the expansion of the definition of ‘cash’ onto ‘digital assets’.

April 2024 U.S. Congress

U.S. Senators Kirsten Gillibrand (D-NY), member of the Senate Agriculture Committee, and Cynthia Lummis (R-WY), member of the Senate Banking Committee, introduced the bipartisan Lummis-Gillibrand Payment Stablecoin Act, legislation that creates a "clear regulatory framework for payment stablecoins that will protect consumers, enable innovation and promote U.S. dollar dominance while preserving the dual banking system." 

The Act aims to:

  • Protect consumers by requiring stablecoin issuers to maintain one-to-one reserves and prohibiting unbacked, algorithmic stablecoins. 
  • Prevent illicit or unauthorized use of stablecoins by issuers and users. 
  • Create federal and state regulatory regimes for stablecoin issuers that preserves the dual banking system. 
February 2024 U.S. Congress

S.B. 3801, which amends the Federal Reserve Act to "prohibit the Federal Reserve banks from offering certain products or services directly to an individual, to prohibit the use of central bank digital currency for monetary policy, and for other purposes" was introduced, read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

January 2024 U.S. Congress

S.B. 3603, which establishes an information-sharing pilot program to combat the illicit use of cryptoassets, was introduced, read twice and referred to the Committee on the Judiciary.

November 2023 U.S. Congress

S.B. 3229, which prohibits Federal agencies from restricting the use of convertible virtual currency by a person to purchase goods or services for the person's own use, and for other purposes, was introduced, read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

September 2023 U.S. Congress

H.R. 5745, which provides for the regulation of digital assets, and for other purposes, was introduced and referred to the Committee on Financial Services, and in addition to the Committees on Agriculture, and Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

September 2023 U.S. Congress

H.R.5403, which amends the Federal Reserve Act to prohibit the Federal reserve banks from offering certain products or services directly to an individual, to prohibit the use of central bank digital currency for monetary policy, and for other purposes, was introduced and referred to the House Committee on Financial Services.

July 2023 U.S. Congress

SB 2669, which  requires the Financial Crimes Enforcement Network to issue guidance on digital assets, and for other purposes, was read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

July 2023 U.S. Congress

HR 5050, to amend title 5, United States Code, to require Members of Congress to disclose financial interests in cryptocurrency, and for other purposes, was introduced and referred to the House Committee on House Administration.

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