U,S. Senators Kirsten Gillibrand (D-NY) and Cynthia Lummis (R-WY) unveiled the full version of their long-awaited crypto regulation bill on Tuesday. 

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The legislation titled the Responsible Financial Innovation Act, also referred to as the Lummis-Gillibrand bill, aims to create “regulatory clarity for agencies charged with supervising digital asset markets, provides a strong, tailored regulatory framework for stablecoins, and integrates digital assets into our existing tax and banking laws.”

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Their bill would liberate small-scale purchases of goods and services from the mire of tax implications by making transactions of less than $200 tax-free, potentially clearing a path for cryptocurrencies, such as Bitcoin, to act more like a currency.

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Notably, the bill proposes to assign regulatory authority over digital assets to the U.S. Securities and Exchange Commission (SEC) and Commodities Futures Trading Commission (CFTC). The SEC would regulate digital assets classified as securities, whereas digital assets classed as commodities would fall under the jurisdiction of the CTFC:

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"Digital assets that meet the definition of a commodity, such as bitcoin or ether, which comprise more than half of digital asset market capitalization, will be regulated by the CFTC," the bill states.

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It’s unlikely the bill will make headway this year as lawmakers get ready for the November midterm elections. But Senator Gillibrand is hopeful it will advance through congressional committees and be ready to pass in 2023.

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