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Lawmakers introduced legislation on Tuesday aimed at creating a regulatory framework for digital assets, such as Bitcoin and Ethereum.

A new law, known as the Responsible Financial Innovation Act (RFI), aims to integrate digital assets into current legal frameworks while encouraging financial sector innovation.

Additionally, the proposed legislation would give the Commodity Futures Trading Commission (CFTC) regulatory authority over digital asset spot markets, as well as create a new advisory committee tasked with developing guidelines, empowering regulatory agencies, and providing lawmakers with guidance on rapidly evolving technological developments.

Lummis and Gillibrand Crypto Bill Key Facts

There will be no tax on crypto transactions of less than $200

This means that you won’t be charged sales tax if you use Bitcoin or Ethereum to purchase items which cost less than $200.

Digital assets belong to their owners, who have the right to control them

Full control of our digital assets is proposed by the bill. As with other valuable assets, such as gold, it is customary for governments to require their banks to store them.

Commodities, not securities, characterize the vast majority of cryptographic assets

I won’t go into the nitty-gritty, but it appears that the bill proposes to classify most crypto assets like Bitcoin and Ethereum as commodities. It is because of this that the CFTC (Commodity Futures Trading Commission) will be in charge of enforcing regulations, rather than the SEC.
Since the SEC is anti-crypto and wants to regulate it as much as possible, this is a huge win for crypto.

Crypto mining taxes

The moment Bitcoin is mined, it is taxed as income. This means that miners will have to pay a lot of money in taxes.
It’s time for a change, and that’s what this bill proposes. Miners will be subject to a tax after selling their cryptocurrencies.

Stablecoins are obligated to keep a pristine supply

There would have to be enough liquid assets to cover all of the stablecoins. A project’s reserve assets would also have to be made public. A repeat of the Great Depeg of UST / LUNA, which occurred just a few weeks ago, is clearly not desired.

The 69-page Crypto Bill can be found here if you’d like to read it: https://www.lummis.senate.gov/wp-content/uploads/Lummis-Gillibrand-Responsible-Financial-Innovation-Act-Final.pdf

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