Digital Assets Bill Submitted to Congress
On Tuesday, June 7, 2022, a cryptocurrency bill was submitted to US congressmen for consideration.
The emphasis in this document is on:
- taxation of cryptocurrencies (cancellation of tax on transactions up to $200);
- regulation of stable coins (including the ban on algorithmic stablecoins);
- the powers of regulators of the cryptosphere (who will get the role of the main regulator).
This is an extensive 69 page document covering stablecoins, DAO activities, cryptocurrency exchanges, and more. It was developed by US senators of both parties - Cynthia Lummis (Wyoming) and Kirsten Gillibrand (New York). The authors of the bill are confident that it will resonate with congressmen of both parties.
The document proposes to consider stablecoins as assets backed by other financial assets, but not cryptocurrencies. This automatically excludes the existence of algorithmic stablecoins as a class of cryptocurrencies.
Regarding mining and staking, the bill says that the received crypto assets should not be taxed unless they are sold. They simply should not participate in the calculation of the gross income of the taxpayer.
The authors of the law also mentioned that crypto projects managed by the DAO are subject to less strict regulation. Since their cost will not be affected by the decisions of the centralized body.
As for jurisdiction, the Lummis-Gillibrand bill proposes to transfer the rights to regulate the cryptosphere in favor of the CFTC, and not the SEC. If the bill passes, it will put an end to the war between federal regulators that has hampered the growth of the industry.
The bill itself was created within a year and contains comprehensive rules. The authors tried to bring more clarity to the regulation of cryptocurrencies. Note that the bill was positively received by representatives of the cryptocurrency industry.
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