US Senate Propose Bill Classify Cryptos as Commodities Like Oil -Breaking
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US Senate Introduces Bill to Classify Cryptos As Commodities Similar To Oil- Senators in the US are considering legislation to treat digital assets as commodities, such as steel, oil and wheat.
- This bill defines cryptocurrencies as “ancillary assets”, fungible assets, which are either offered or sold.
- However, cryptocurrencies will be subject to SEC scrutiny in a different way than traditional securities.
Senators from the United States have proposed a bill that would classify digital assets in the same way as other commodities, such as oil, wheat or steel. The Commodity Futures Trading Commission will assume the majority of oversight responsibility, and not Securities and Exchange Commission.
The Consumer News and Business Channel published the following report on June 7, 2022.
Sens. Kirsten Gillibrand (Senator) and Cynthia Lummis (Senator) sponsored the Responsible Financial Innovation Bill.
Lummis and Gillibrand serve on the Senate Committee on Agriculture and Banking. The legislation was the result of months-long collaboration between the Senate and the House, they said. This legislation, therefore, represents the first attempt at structuring digital asset markets using long-awaited legal terms.
Lummis made the following statement in a release to the media:
It is vital that Congress creates legislation to promote innovation, while also protecting consumers against harmful actors as this sector continues its growth. Lummis Gillibrand will give clarity to regulators and the industry, while still allowing for flexibility to accommodate the constant evolution of digital assets markets.
Digital currencies are classified as either ancillary or intangible, transferable assets. They can be offered and sold together with the purchase or sale of security.
CNBC further reports that crypto currencies will be treated differently to traditional securities in SEC scrutiny, unless the privileges granted to corporate investors are extended to them.
Both the CFTC, and SEC work together to protect the US markets. While the CFTC controls the sale and purchase of crude commodities like wheat, oil or steel, it oversees companies that are seeking to raise capital.
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