Leaked Crypto Bill Suggests US To Go After DeFi, DAOs, Stablecoins

A leaked copy of the new bipartisan Senate bill appears to favor a much tighter regulatory environment for cryptocurrency assets.

What Happened:A June 3 Barronsreportdetails a revised bill put forward by SenatorsCynthia LummisandKirsten Gillibrand.

The oversight of the cryptocurrency industry would be split between two U.S. regulators: theCommodity Futures Trading Commission(CFTC) and theSecurities and Exchange Commission(SEC).

After incorporating industry feedback, the new version of the bill broadens the definition of tokens under the SECs jurisdiction, but only courts will be able to make exceptions to the presumption that a token is a security.

The Fine Print: The bill clarifies the universe of digital tokens that would fall under the SECs jurisdiction. The latest draft restricts the SECs authority instead of expanding it, said a spokesperson for Lummis to Barrons.

The CFTC would oversee trading in spot markets. The draft bill also puts forth recommendations for enhanced decentralized finance (DeFi) and decentralized autonomous organization (DAO) regulation.

It broadly classifies fungible tokens as securities while making a case for non fungible tokens (NFTs) to be an entirely new asset class.

Online reactions:The crypto community weighed in on the leaked copy of the draft bill as it began making the rounds on social media.

The SEC had previously ruled thatBitcoinBTC/USD andEthereumETH/USD are not securities but has brought enforcement actions for alleged unregistered securities offerings toXRPXRP/USDissuerRipple, and more recently,Binancefor its native tokenBinance CoinBNB/USD.