- CFTC is becoming a strong contender for SEC to replace the regulatory authority as the major crypto regulator.
- There is a possibility that this bill might offer a tax exemption for capital gains under $200 to be reported to the IRS.
- The bill also contains regulatory provisions for the stablecoins the controversial issue sparked due to Terra collapse.
SEC Won’t be Regulating Crypto?
SEC, the notorious financial regulator of the United States might lose its authority over regulations on cryptocurrencies if the latest Senate bill proposed by Kirsten Gillibrand and Cythia Lummis passes. This would mean that 200 most precious crypto assets might slip from the hands of the Securities and Exchange Commission.
Although, it appears like the bill is not strong enough to pass the persisting Congress. But it is anticipated that there will be fresh momentum in the next year following the mid term elections in November.
The Bill dubbed Responsible Financial Innovation Act, is the most sophisticated piece of cryptocurrency regulation proposed to this date and initiates a raft of other considerable measures, involving a provision that can be considered as a relief for the folks, as it will allow tax exemption on crypto gains lesser than $200 or low to IRS.
The proposed bill to end the reign of SEC with respect to the cryptocurrency industry is among the most considerable bills and comes after myriads of complaints regarding scarcity in clarity as to whether a virtual token such as Ethereum can be considered as a security.
More Provisions In The Bill
The 69 page bill offered by Gillibrand and Lummis also offers provisions to regulate the stablecoins, given the recent collapse of TerraUST, which took the whole crypto market down the hill alongside.
The chaos in the Terra stablecoin ecosystem, vanishing tens of billions of dollars, came into elements as the Terra project was depending on monetary engineering gimmicks to upkeep the peg of stablecoin to $1.
If this Senate bill becomes a law, the stablecoin issuers will be obliged to maintain a reserve of 100%, and make sure that stablecoin owners could interchange the coins for equal amounts of dollars every time.
Source: https://www.thecoinrepublic.com/2022/06/10/secs-reign-might-end-if-senate-bill-passes-may-allow-200-tax-exemption/