Senator Cynthia Lummis says that the crypto market structure could pass in the next two weeks. The highly anticipated legislation aims to create a clear regulatory framework for cryptocurrencies and other digital assets in the US. Let’s discuss what the bill contains and how it may affect the crypto market.
How Will The Crypto Market Structure Bill Affect The Cryptocurrency Market?
The upcoming legislation aims to build on the Digital Asset Market Clarity Act (CLARITY Act). The US does not have any clear legislation on how to define digital assets. Some could be “securities” and others could be “non-securities.” The SEC has had substantial trouble over the last few years with these definitions. The most popular was the SEC vs. Ripple lawsuit, which lasted for nearly four years.
Secondly, the crypto market structure bill will bring more clarity as to who will oversee the crypto industry. Currently, the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have clashes over which cases should fall under their jurisdiction. The upcoming bill will make the process smoother. The CFTC will oversee cryptocurrencies that fall under the “commodities” tab, and the SEC will oversee cryptocurrencies that qualify as “securities.”
The lack of proper legislation and regulation has also added to the widespread of scandals, frauds, and collapses. The FTX collapse of 2022 was a wake-up call for the crypto market. Lawmakers want to make sure such a debacle never happens again.
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The bill will also likely set clear rules for crypto taxation, anti-money laundering practices, and standards for exchanges.
The crypto market structure bill will likely have a positive impact on the market. The legislation could build investor confidence, and more people may enter the crypto market. The number of frauds and scams may also go down as a result of the legislation.