A debate as to whether cryptocurrencies are more like commodities than securities is playing out in Washington, with Senators Cynthia Lummis (R-Wyoming) and Kirsten Gillibrand (D-New York) introducing legislation to regulate them like commodities. If passed, the bill would put digital currency under the regulatory purview of the Commodity Futures Trading Commission (CFTC) rather than the Securities and Exchange Commission (SEC), a win for the crypto sector, which prefers the smaller agency. SEC chair Gary Gensler takes the position that digital assets are akin to publicly traded stock and should be regulated by the SEC.
Continue reading Senate Cryptocurrency Bill Could Be a Victory for Blockchain

Washington policymakers have identified stablecoins as the initial target for stricter cryptocurrency regulation. Stablecoins — which are backed by a reserve asset — are booming due to investors using them to trade among other cryptocurrencies. The stablecoin sector grew by about 500 percent in the 12-month period ending October 31, according to a report issued by the Biden administration. While there are four basic types of stablecoin, the ones collateralized by fiat currency — and specifically the U.S. dollar — is by far the most popular. A bipartisan effort exists to create safeguards ensuring one stablecoin is expeditiously redeemable for one dollar. Continue reading U.S. Lawmakers Target Stablecoin in Cryptocurrency Debate