Senator Kirsten Gillibrand, DN.Y. , Senator Cynthia Lummis, R-Wyoming.

Wide-ranging A bipartisan law released yesterday in Washington will regulate cryptocurrencies and other digital assets, following a series of high-profile busts and failures.

But whether the bill proposed by US Senator Kirsten Gillibrand (DN.Y.) and Cynthia Lummis (R-Wyo.) Can clear Congress, especially during the period of rising parties prior to the midterm elections. Is unknown. The bill will also occur when cryptocurrency proponents grow larger in Washington and spend more on free spending.

Called the Responsible Financial Innovation Act, the bill proposes a legal definition of digital assets and cryptocurrencies. The IRS must adopt guidance on the acceptance of digital assets and charitable donations by sellers. It distinguishes between digital assets, which are commodities and securities, but this is not done.

The bill “provides regulatory clarity to institutions responsible for overseeing the digital asset market, provides stablecoin with a strong and coordinated regulatory framework, and integrates digital assets into existing tax and banking laws. “Masu,” Lummis said in an email. Stablecoin is a type of cryptocurrency that is fixed to a specific value, usually the US dollar, another currency, or gold.

According to her financial information, Lumis is a supporter of cryptocurrency development and has invested between $ 150,002 and $ 350,000 in Bitcoin.

The law imposes disclosure requirements on digital asset companies to enable consumers to make informed decisions and clarifies the agency’s responsibilities for various digital assets, including the jurisdiction of the Commodities Futures Trading Commission for Bitcoin. Needs research on the energy consumption of digital assets. ..

The bill comes during a period of cryptocurrency turmoil, including May’s terraUSD stablecoin and Luna (a coin aimed at buying and selling assets)’s May meltdown. These coins were traded at a value of less than 1 / 10,000 of a cent.

Gillibrand said the bill would establish “a regulatory framework that promotes innovation, sets clear standards, defines appropriate jurisdictions, and protects consumers.”

These developments have led lawmakers on both sides of the aisle to uphold a law that scrutinizes digital assets more closely.

And crypto lobbying continues. For the first time this year, industry executives flooded parliamentary races with $ 20 million, according to records and interviews.

Cryptocurrencies have supporters in Congress. At the DC Blockchain Summit in Washington last month, DN.J. Senator Cory Booker said, “Exciting potential democratization that could result from creating a wider path of opportunity for marginalized communities. He said he was attracted to the “effect”.

Despite the risks, research shows that about 16% of adult Americans, or 40 million, invest in cryptocurrencies. And 43% of men between the ages of 18 and 29 put money into cryptocurrencies.

African Americans are also more likely to invest in cryptocurrencies than white consumers.

President Joe Biden signed a presidential order in March, calling on the Federal Reserve to investigate whether central banks should create their own digital currencies, and cryptocurrencies are financially stable to federal agencies, including the Ministry of Finance. And instructed to study the impact on national security.

Treasury Secretary Janet Yellen said in an April speech at American University that more government regulation was needed to monitor the spread of cryptocurrencies and prevent fraudulent or illegal transactions.

“We are keenly interested in ensuring that innovation does not lead to fragmentation of the international payment architecture,” she said, with the Treasury working with the White House and other institutions to report on digital currencies. He added that he would make recommendations. FATIMA HUSSEIN, WASHINGTON, MDT / AP

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