U.S. Cryptocurrency Bill Hearing Set to Be Delayed

With many crypto enthusiasts looking forward to the highly discussed U.S. cryptocurrency bill, there are new indications that the U.S. Senate may likely not vote on the bipartisan cryptocurrency bill this year. Republican Senator Cynthia Lummis made this fact known on Tuesday during the Bloomberg Crypto Summit. 

Speaking on the reason for the delay, Lummis stated that because of the comprehensive nature of cryptocurrency and the fact that the technology is still new to many senators, they would need some time to digest the scope of the bill given its complexities. 

The U.S cryptocurrency bill was co-sponsored by Lummis, a Republican senator, and her Democrat counterpart, Senator Kristen Gillibrand. The bill seeks to classify decentralized digital assets as commodities, effectively placing digital currencies under the purview of the Commodity Future Trading Commission.

Speaking with Forkast Editor in Chief Angie Lau last month, Lilya Tessler, Head of FinTech Blockchain Group, stated that lawmakers are working closely with the relevant regulators to know what jurisdiction cryptocurrencies should fall under. 

Besides seeking to classify cryptocurrencies as commodities, the bill also captures tax implications, banking regulations, and security laws. 

What the bill means to the crypto community 

Micheal Shing, director of risk management of Taipei-based fiat-crypto exchange, stated that the bill would be a defining moment for the crypto industry. He also stated that defining the digital assets and regulating their payment framework will help the crypto industry grow even further. 

At the moment, most digital assets are categorized as securities in the U.S, which ought not to be. But with the U.S. cryptocurrency bill seeking to clarify things, it is only a matter of time before crypto activities pick up steam, especially in the U.S., where many companies have been unable to get operational licenses because of a lack of adequate regulations guiding crypto activities. 

Crypto enthusiasts will now have to patiently wait for the U.S. Senate deliberations on the cryptocurrency bill to know what to expect. 

The news hasn’t affected the market negatively as top cryptocurrencies are in the green following two days of massive buys that have pushed Bitcoin from last week’s low of $19,234 to approximately $23,000.