{"id":529316,"date":"2022-12-20T00:17:52","date_gmt":"2022-12-19T21:17:52","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/cryptos-regulatory-fate-will-be-decided-in-the-year-ahead\/"},"modified":"2022-12-20T00:17:52","modified_gmt":"2022-12-19T21:17:52","slug":"cryptos-regulatory-fate-will-be-decided-in-the-year-ahead","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/cryptos-regulatory-fate-will-be-decided-in-the-year-ahead\/","title":{"rendered":"# Crypto\u2019s regulatory fate will be decided in the year ahead"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a23d59469831\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a23d59469831\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/cryptos-regulatory-fate-will-be-decided-in-the-year-ahead\/#%E2%80%9D_Cryptos_regulatory_fate_will_be_decided_in_the_year_ahead_%E2%80%9C\" >&#8221; Crypto\u2019s regulatory fate will be decided in the year ahead &#8220;<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/cryptos-regulatory-fate-will-be-decided-in-the-year-ahead\/#Boozman-Stabenow_lacks_clarity\" >Boozman-Stabenow lacks clarity<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/cryptos-regulatory-fate-will-be-decided-in-the-year-ahead\/#The_Lummis-Gillibrand_Responsible_Financial_Innovation_Act\" >The Lummis-Gillibrand Responsible Financial Innovation Act<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/cryptos-regulatory-fate-will-be-decided-in-the-year-ahead\/#Crypto_proponents_should_become_more_vocal\" >Crypto proponents should become more vocal<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Cryptos_regulatory_fate_will_be_decided_in_the_year_ahead_%E2%80%9C\"><\/span>&#8221; Crypto\u2019s regulatory fate will be decided in the year ahead &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMTAvOTRkM2Y0YjMtODdlMS00ZTYzLTk3MjYtYzJjNGY5YmU5NTYxLmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-30a6cf80>It would be ideal for the industry for Congress to weigh in on its fate rather than leaving it to unelected regulators at the Securities and Exchange Commission (SEC). To that end, representatives from both sides of the aisle have introduced bills designed to offer \u201cregulatory clarity.\u201d The moderate position seems to favor placing crypto mostly under the jurisdiction of the Commodity Futures Trading Commission (CFTC). <\/p>\n<p>To be sure, there are two Senate bills in particular that are not ideal. <\/p>\n<h2><span class=\"ez-toc-section\" id=\"Boozman-Stabenow_lacks_clarity\"><\/span>Boozman-Stabenow lacks clarity<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Democratic Senate Agriculture Committee Chairwoman Debbie Stabenow has coauthored one proposal with Republican Sen. John Boozman. With an increasing number of eyes on the bill in the wake of FTX\u2019s collapse, Stabenow says it is \u201cdefinitely a priority\u201d that the committee will take action on next year.<\/p>\n<p>The Stabenow-Boozman bill, which has broad bipartisan support, would give the CFTC jurisdiction over cryptocurrencies. Democratic Senator Cory Booker and Republican Senator John Thune have also signed on to the bill. If it passes, all crypto trading platforms (brokers, dealers and custodians) would be required to register with the CFTC. Exchanges would report to the CFTC, and bankruptcy protections, as well as minimum capital requirements, would be implemented.<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Disaster looms for Digital Currency Group thanks to regulators and whales<\/em><\/strong><\/p>\n<p>Cryptocurrency insiders voice one particular recurring critique: The bill needs to lay out a clearer definition of securities and commodities. Will digital securities be evaluated by the Howey test or some other way? The bill doesn\u2019t clarify. The bill also risks being interpreted as a de facto ban on decentralized finance (DeFi). <\/p>\n<p>It is not a good <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>roach to leave non-elected bureaucrats and courts to determine case-by-case whether or not digital assets are a security. The United States should avoid rulemaking by enforcement, allowing Congress to determine the difference between a digital security and a commodity. <\/p>\n<p>Despite failing to define which cryptocurrencies constitute a security, the bill does change the definition of a commodity to include \u201cdigital commodity.\u201d<\/p>\n<h2><span class=\"ez-toc-section\" id=\"The_Lummis-Gillibrand_Responsible_Financial_Innovation_Act\"><\/span>The Lummis-Gillibrand Responsible Financial Innovation Act<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The Stabenow-Boozman bill is not the only Senate proposal sitting on the docket for next year. Republican Senator Cynthia Lummis and Democratic Senator Kirsten Gillibrand have also drafted a comprehensive bill that would set standards for consumer protection, investor protection, and advertising.<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Sen. Lummis: My proposal with Sen. Gillibrand empowers the SEC to protect consumers<\/em><\/strong><\/p>\n<p>Lummis had gained a \u201cpro-crypto\u201d reputation before putting her name on the Responsible Financial Innovation Act (RFIA) alongside New York Senator Kirsten Gillibrand. The bill introduces a new term, ancillary asset, which seems similar to a utility token. To be designated an ancillary asset, the token must be fungible. People <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">general<\/a>ly seem to view the bill as good for crypto.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Crypto_proponents_should_become_more_vocal\"><\/span>Crypto proponents should become more vocal<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The cryptocurrency industry is roughly 10 years old, and yet there are still clamors for \u201cregulatory clarity.\u201d If the SEC knew which ones were securities, however, wouldn\u2019t they have informed the industry? Maybe not even the SEC knows where to draw the line. If you took a list of the top 20 cryptocurrencies to five different major law firms with experience in crypto, they would all likely offer different opinions about which would be deemed securities.<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Biden\u2018s anemic crypto framework offered nothing new<\/em><\/strong><\/p>\n<p>While there\u2019s a lot of focus on the SEC, there are many organizations undermining the true ethos of crypto. Those include the Office of Foreign Assets Control (OFAC), the Financial Crimes Enforcement Network (FinCen), the Department of the Treasury, and more. Even figures from our own industry undermine crypto. Sam Bankman-Fried, who was arrested in the Bahamas and is set to be extradited to the United States, argued that interfaces to protocols should be gated by licenses and know your customer laws. <\/p>\n<p>That eliminates everyone from partaking in the industry who can\u2019t come up with the $100,000 to get a preliminary legal review, stifling innovation and entrepreneurial spirit. Only large companies would be able to offer financial services. The industry must push back against any legislation that infringes on the openness of crypto. <\/p>\n<p>The United States House of Representatives will consider multiple crypto-related bills in 2023 in what could be a fateful year for crypto. The industry must become diligent now in ensuring events deep into this past crypto winter don\u2019t give way to draconian regulations.\u00a0<\/p>\n<div>\n<div style=\"background: rgb(239, 239, 239); border: 1px solid rgb(204, 204, 204); padding: 10px;\"><strong>Kadan Stadelmann<\/strong> is a blockchain developer and the Komodo Platform\u2019s chief <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a> officer. He graduated from the University of Vienna in 2011 with a degree in information technology before attending the Berlin Institute of Technology for technical informatics and scientific computing. He joined the Komodo team in 2016.<\/div>\n<\/div>\n<p class=\"post-content__disclaimer\"><em>This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author\u2019s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.<\/em><\/p>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. 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To that end, representatives from both sides of the aisle have introduced bills designed&#8230;<\/p>\n","protected":false},"author":1,"featured_media":529317,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/cdn-cgi\/image\/format=auto,onerror=redirect,quality=90,width=1200\/https:\/\/s3.cointelegraph.com\/uploads\/2022-10\/94d3f4b3-87e1-4e63-9726-c2c4f9be9561.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74858,74863,75269,52214,71511,55229,72692,70934,70289,8575],"class_list":["post-529316","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin-regulation","tag-cryptocurrencies","tag-us-government","tag-congress","tag-government","tag-law","tag-legislation","tag-regulation","tag-senate","tag-usa"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/529316","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=529316"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/529316\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/529317"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=529316"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=529316"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=529316"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}