A long-awaited bipartisan bill released on Tuesday lays out the groundwork for comprehensive crypto regulation in the United States.
Drafted by Senators Cynthia Lummis and Kirsten Gillibrand, the Responsible Financial Innovation Act represents a rare collaboration between Republicans and Democrats to regulate crypto at a federal level.
The bill plans to make crypto transactions below $200 tax free, a move that could spur its use as a currency, according to a report by Forbes. It will set up a crypto advisory committee to help guide regulators.
It also brings crypto under the purview of the Commodity Futures Trading Commission (CFTC), rather than the Securities and Exchange Commission (SEC). Several crypto proponents have been clamoring for such a regulatory move, given the uncertainty over the SEC’s stance on crypto as a security.
Still, the bill is only a draft. It will now be subject to a series of reviews and votes before it can even be considered for passage.