After last week’s rout, the crypto market turned mixed.
The price of bitcoin gained 1.6% and ethereum’s price budged a few basis points higher this week. Cardano
Meanwhile, this past Tuesday Republican Cynthia Lummis and Democrat Kirsten Gillibrand introduced what many call a “landmark” crypto bill. Named the Responsible Financial Innovations Act, the bipartisan legislation aims to finally clear up the biggest regulatory questions hanging over digital assets.
“The bipartisan Responsible Financial Innovation Act is a landmark bill that will establish a regulatory framework that spurs innovation, develops clear standards, defines appropriate jurisdictional boundaries and protects consumers. Importantly, the Lummis-Gillibrand framework will provide clarity to both industry and regulators, while also maintaining the flexibility to account for the ongoing evolution of the digital assets market,” said Senator Gillibrand
[Ed note: Investing in crypto is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]
Kirsten Gillibrand, D-N.Y.
Here’s a run-through of some of the key provisions in the legislation.
The Responsible Financial Innovation Act is a landmark, yet very early, step in building a clear regulatory framework for crypto. The bill will have to pass a number of Senate hearings before it can be brought up for a full vote.
Political experts, therefore, believe it has zero chance of going anywhere before the end of this year. And given its scope, there’s a high possibility that it will be heavily massaged or split into smaller bills.
Still, this bipartisan effort is shaping up to be the most sweeping—and largely pro-crypto—crypto legislation to date, which is crucial for the mainstream adoption of digital assets and their integration into traditional finance.
As Diogo Monica, the co-founder of institutional digital asset platform Anchorage, said in an interview with CNBC, “What is bad for crypto is no regulation and enforcement, and any kind of regulation, even strict, is welcome by the industry.
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