A bipartisan #crypto bill was introduced yesterday, 7 June 👀📝
Also known as the Responsible Financial Innovation Act, @SenLummis and @SenGillibrand proposed a regulatory framework for digital assets in the bill. Here are the key takeaways in case you missed it:
🧵👇
Also known as the Responsible Financial Innovation Act, @SenLummis and @SenGillibrand proposed a regulatory framework for digital assets in the bill. Here are the key takeaways in case you missed it:
🧵👇
1️⃣ Definitions
The bill recognizes #crypto as digital assets and makes a clear distinction between tokens that are considered securities vs. commodities. The class a token falls into will be evaluated by its purpose and the rights conveyed to its holders.
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The bill recognizes #crypto as digital assets and makes a clear distinction between tokens that are considered securities vs. commodities. The class a token falls into will be evaluated by its purpose and the rights conveyed to its holders.
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Based on the legislation, most #cryptocurrencies like #Bitcoin and #Ether are defined as "ancillary assets" which fall under commodities.
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2️⃣ Regulation
Crypto assets classified as commodities will fall under the Commodity Futures Trading Commission’s (CFTC) jurisdiction. #CFTC will have full authority over digital asset spot markets.
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Crypto assets classified as commodities will fall under the Commodity Futures Trading Commission’s (CFTC) jurisdiction. #CFTC will have full authority over digital asset spot markets.
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On the other hand, crypto assets that fall under securities will be regulated by the Securities and Exchange Commision (#SEC).
The CFTC and SEC have also been directed to create a self-regulatory organization (SRO) for more structured and efficient supervision of crypto.
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The CFTC and SEC have also been directed to create a self-regulatory organization (SRO) for more structured and efficient supervision of crypto.
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3️⃣ Taxation
Crypto transactions under US$200 will be tax-free, paving the way for virtual currencies to be used as a medium of exchange in everyday life.
Miners and validators will not be taxed on their rewards as income until their assets are sold for fiat.
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Crypto transactions under US$200 will be tax-free, paving the way for virtual currencies to be used as a medium of exchange in everyday life.
Miners and validators will not be taxed on their rewards as income until their assets are sold for fiat.
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4️⃣ Stablecoin regulation ⚖️
The bill establishes that #stablecoins must be fully backed by one or more liquid non-digital financial assets, and issuers must meet detailed disclosure requirements.
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The bill establishes that #stablecoins must be fully backed by one or more liquid non-digital financial assets, and issuers must meet detailed disclosure requirements.
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There will also be a new regulatory framework set up for banks and credit unions to issue their own stablecoins.
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5️⃣ Disclosure requirements ✍️
Crypto projects are to disclose the scope of permissible transactions that may be undertaken with users' digital assets, including material source code updates, treatment of assets in insolvency, and applicable fees.
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Crypto projects are to disclose the scope of permissible transactions that may be undertaken with users' digital assets, including material source code updates, treatment of assets in insolvency, and applicable fees.
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6️⃣ Energy consumption ⚡
The Federal Energy Regulatory Commission is tasked to analyze and report on crypto's energy consumption levels and determine the best ways to use renewable energy and reduce energy waste.
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The Federal Energy Regulatory Commission is tasked to analyze and report on crypto's energy consumption levels and determine the best ways to use renewable energy and reduce energy waste.
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7️⃣ DAOs
Decentralized Autonomous Organizations (#DAOs) will be classified as businesses under the tax code and will have to be legally incorporated.
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Decentralized Autonomous Organizations (#DAOs) will be classified as businesses under the tax code and will have to be legally incorporated.
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If you found this summary of the #CryptoBill useful, like, retweet, and comment below.
Try Harvest to see which of your assets may be affected by the released bill! 🌳👇
harvest.treehouse.finance/connect
Try Harvest to see which of your assets may be affected by the released bill! 🌳👇
harvest.treehouse.finance/connect
What are your thoughts on this? 🤔
https://twitter.com/TreehouseFi/status/1534353318146985984
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