Key elements of Responsible Financial Innovation Act Introduced to the US Senate today Bitcoin BTC / USD, Ethereum ETH / USD And too much cryptocurrency as a commodity. Over the past few days, leaked versions of the bill have been frowned upon, in particular, who will be the status and jurisdiction of these cryptocurrencies.
What happened: A key factor in the distinction made in this new law is how to define different digital currencies and assets.
This creates a clear division between commodities and assets that may be considered securities. The law defines most major cryptocurrencies such as Bitcoin and Ethereum as commodities. In addition, we assign the Commodity Futures Trading Commission (CFTC) the authority to regulate these commodities to the Securities and Exchange Commission (SEC).
An important part of the law was how to distinguish which cryptocurrencies are considered commodities and which cryptocurrencies are considered securities. According to Yahoo Finance, the following major tokens Solana SOL / USD When Cardano ADA / USD Unless some of their unique features or actual use indicate that they are within the scope of the SEC, they have been defined by law as commodities. The law further clarified that cryptocurrencies can be defined as securities under certain contingencies, such as receiving dividends as a result of management or providing a revenue sharing model.
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Important reason: Over the last few years, there has been considerable debate and dialogue about digital assets. The range of digital assets is in flux among various government agencies such as the CFTC and SEC. As a result, multifaceted involvement has created a barrier to effective cryptocurrency regulation. In other words, the definition and scope of these digital assets was uncertain, so there was little room for formal adoption. This law is valuable and important in its ability to define these assets as commodities, assign the bodies that have jurisdiction over these assets, and pave the way for mainstream regulation.
What’s next: Regulations are important for cryptocurrencies to truly reach the best possible market reach and for the technologies underlying these digital assets to fully benefit the global economy. For effective regulation to exist, there must be a well-defined term and a well-assigned supervisory authority.
The law hopes to achieve the same, and if this direction is maintained, it will continue to be regulated, suggesting mainstream adoption and future growth of the market.
