Senators Gillibrand And Lummis Draft A New Cryptocurrency Regulation Bill

Two Senators from the United States have presented a new Crypto-based bill that is focused towards removing tax from crypto profits gainers of less than $600.

Senator Kirsten Gillibrand and Senator Cynthia Lummis from the United States have formally presented a proposal demanding a revision of taxation policy on individuals or companies that are gaining less than $600 from crypto profits. Senator Lummis posted on twitter saying that she is excited to be working with Senator Kristen Gillibrand to introduce a new framework that provides clarity and assures consumer protection.

Accessibility of Crypto in America

This law is basically directed towards the young customers inside of the United States who are willing to invest and hold some number of cryptocurrencies. Senator Lummis told Yahoo Finance that the $600 mark is just the starting and they will work to increase this value in the future coming time, according to the feedback received.

Senator Lummis said that supporting this law will assist the crypto space to give life to innovative crypto projects and market developments in the region of America. The tweet from Senator Lummis was basically a result of the catalytic order made by U.S. President Joe Biden, which directed federal agencies in the country to produce an official framework focused on the use of cryptocurrencies.

Senator Lummis basically thinks that majority of the cryptocurrencies are commodities, making them fall under the rules of the Commodities Futures Trading Commission. During a recent interview with journalism firm Politico, Senator Lummis stated that she sees the top performing cryptocurrencies like Bitcoin and Ethereum as commodities, meanwhile the rest of the list of cryptocurrencies operating in the space still need to follow the Howey Test.

Protecting Customers and Powering Startups

Senator Lummis and Senator Kristen have called the Securities and Exchange Commission to focus on safeguarding users of different cryptocurrency exchanges from any major losses because of hacks or exploitations on their networks, referring to the fresh accounting activities that are designed in such a way, to provide better customer protection who have invested in previous digital assets.

The main objective in the eyes of the Senators is to make crypto more accessible for everyone, while also supporting crypto startups which obviously do not have high level of profit gains.

Leave a Comment