“Responsible Financial Innovation Act” to be submitted. What’s new about the new bill?

New bill called "Responsible Financial Innovation Act" to be submitted. What are its key changes?

Author: Martin Young, CryptoPotato; Translation: Song Xue, Blocking

On July 12, Senators Cynthia Lummis and Kirsten Gillibrand will submit a revised crypto bill.

The modified “Responsible Financial Innovation Act” aims to classify most cryptocurrencies as commodities, similar to gold.

The senators stated that this would make them subject to the Commodity Futures Trading Commission (CFTC) rather than the Securities and Exchange Commission, which is “stifling innovation in financial technology.”

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Crypto bill comeback

The SEC wants to apply 90-year-old legislation to regulate and treat cryptocurrency companies, just like banks and stock exchanges.

According to Wired, Lummis said: “To a large extent, the domestic industry is really trying to comply with regulations, but they’re just left out in the cold.” He added, “This is not how we regulate in this country.”

The proposed legislation is intended to protect investors and prevent significant crashes that could paralyze the industry in 2022. However, it does not advocate for enforcement actions, litigation, or asset freezes that would harm investors (which is exactly what the SEC has been doing).

The report cites an insider as saying that the new bill, if passed, will require cryptocurrency exchanges to store customer funds in third-party trusts. It will also prevent exchanges from using their own funds or tokens for internal transactions.

In addition, the US Commodity Futures Trading Commission has the authority to oversee potential misdemeanors at exchange affiliates.

The bill also prohibits “re-hypothecation,” a practice that provides financing for digital assets already locked in other loans.

The legislation has been submitted to the US Commodity Futures Trading Commission (CFTC) and the US Securities and Exchange Commission (SEC), but Lummis is concerned that the bill will encounter obstacles.

“After we’ve done everything we can to reach out to them and work with them, I don’t want them to come back and oppose this at the last minute.”

The United States is far behind other countries in regulating cryptocurrencies. As a result, the outflow of talent, innovation, and capital has already begun.

Cryptocurrency Market Outlook

While the cryptocurrency market will be boosted by progressive legislation in the United States, current market sentiment and trading volume remain steady.

The total market capitalization for the day remains unchanged at $1.23 trillion, with little movement in high market cap tokens in the past 24 hours.

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