The crypto industry in the US welcomed new bipartisan legislation introduced to regulate it. The bill was tabled by Senators Cynthia Lummis and Kirsten Gillibrand and represents the first concrete step toward finally regulating the sector.
Analysts recognize that the bill is in its embryonic form and represents just a starting point. It will take a long time for all parts of the bill to pass through Congress and become law.
Many crypto lobbyists are pleased that the bill starts an exciting process that will hopefully culminate in the full legitimacy of the asset class. Of note is one element of the bill that proposes that crypto transactions below $200 will not be taxed. This could see crypto gaining important traction as a payment form, as users could easily buy a meal with bitcoin, for example, without worrying about tax implications.
Crypto analysts also praised that the bill clarifies and crystalizes the definition of what constitutes a crypto broker. Under the bill, the Commodity Futures Trading Commission (CFTC) is set to become the clear authority over crypto affairs and the regulation of crypto firms.
What does this mean for me?
This is undoubtedly good news for the industry and every crypto trader around the world who wants to see a reduction in crypto volatility and more mainstream acceptance. However, there is a broad acceptance that it is just the first step of many, with observers not expecting to see the bill come into law until at least 2024.