(CNBC) Senators Kirsten Gillibrand and Cynthia Lummis are ready to bring on board the first major bipartisan legislation that will tackle issues in the crypto sector.
One of the main provisions in the bill dubbed the Responsible Financial Innovation Act is to classify most digital assets as commodities.
The classification would leave the legislation under the oversight of the Commodities and Futures Trading Commission. The Securities and Exchange Commission would thereby be exempted from the oversight role.
The proposed legislation refers to digital currencies as “ancillary assets” offered or sold in tandem with the purchase or sale of a security.
Under the proposal, digital assets would not be treated as traditional securities unless they entitle their holders to privileges such as dividends and liquidation rights offered to corporate investors.
Gillibrand said that the legislation is a product of months of collaboration between the House and Senate. The bill also comes after a broad industry consultation and research.
The legislators termed the bill as a landmark one that will establish a complete regulatory framework governing digital assets. They say the legislation will encourage responsible financial innovation while safeguarding consumers.
BTCUSD is down by 5.96%.
