The proposed cryptocurrency bill could have a significant impact on NFTs – Mail Bonus

Senator Cynthia Lummis (R-WY) of the Senate Banking Committee and Kirsten Gillibrand (D-NY) of the Senate Agriculture Committee introduced bilateral legislation on Tuesday, after months of teasing a new U.S. regulator focusing on cryptocurrency.

Even though the 69-page law does not mention the NFT, it does contain important information that helps determine whether a symbol is a “product” or a “security”.

The terms ‘digital assets’ and ‘virtual currencies’ need to be clarified.

In the bill of Lummis and Gillibrand, “digital property” is defined as an electronic property that provides economic or property rights or access. This includes virtual currency and payment tablecoins.

The law goes on to say that “virtual currency” is a digital asset that is not backed by an underlying financial asset and is “primarily” used as a currency, unit of account or valuation.

The most common type of cryptocurrency is “goods”.

The 69-page bill, called the “Responsible Financial Innovation Act”, calls for “responsible innovation”. Most cryptocurrencies will be managed by the Commodity Futures Trading Commission (CFTC) instead of the SEC’s strict reporting requirements and high expectations.

However, the SEC still oversees a variety of symbols. In the text of the bill, “ancillary assets” are described as “intangible, variable assets that are offered or sold in parallel with the purchase or sale of securities. This means that digital currencies are “extra assets”. Under US law, these ancillary assets would be called “goods” and would be handled by the CFTC.

Senators Lummis and Gillibrand say the bill sees all digital assets as “ancillary assets” unless they act like securities that companies would normally sell to investors to raise money, such as dividends, bankruptcy or a financial shareholder in an issuer.

Companies that want to be able to register as a “digital asset transfer”.

The bill seeks to regulate “digital asset swaps” by distinguishing between “centralized” and “distributed” exchanges, but does not say what “digital asset swaps” are.

Because of these issues, one lawyer debated whether a distributed platform was an automated market maker (AMM), a liquidity fund or a front end. Brandon Ferrick, Injective Labs’ chief lawyer, has said that “internal inconsistencies” occur when the people who did a project or organization cannot change or influence it on their own.

“So in the case of a distributed platform, if the law says that the platform can only show certain … symbols and the person who created and distributed it can no longer follow that rule, then you will fail every time …

He told The Defiant that it shows that the person does not understand how the technology works.

The reserve fund for the stable coins must be made public.

This week, the New York State Department of Financial Services issued new rules requiring licensed cryptocurrencies that create stablecoins to have a reserve requirement and regular independent review. This may affect people who already have BitLicense.

New York’s revolutionary cryptocurrency, BitLicense, came into force in 2015. It enables companies to engage in virtual currency trading with New York or New Yorkers.

Lummis and Gillibrand’s plan, on the other hand, says that stablecoin providers would have to tell the public how much cash they have on hand and be subject to regular review. This could cause concern for Circle and Tether, two of the most popular stablecoin issuers, as they recently said their products were backed by a mix of cash, cash-like items, short-term securities and trading securities.

Lummis believes that stablecoins would be the first in the industry to receive a full review.

In view of the forthcoming midterm elections in November, the measure will not receive much support until closer to 2023, but it will still pave the way for stricter rules.

Because the bill is so large and complex, MPs may have to break it down and pass it in parts, which could involve changes directly related to the NFT.

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About Humano

He is a freelance writer based in Turkey. He loves NFT, football, movies and technology.

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