A major element of the Responsible Financial Innovation Act introduced to the U.S. Senate today is the classification of Bitcoin (CRYPTO: BTC), Ethereum (CRYPTO: ETH) and a plethora of cryptocurrencies as commodities. Over the past few days, a leaked version of the bill raised eyebrows, in particular, the status and under whom the jurisdiction of these cryptocurrencies will be.
What Happened: Amongst the distinctions made in this new legislation, a significant component is how it defines different digital currencies and assets.
It creates a clear division between what assets may be deemed commodities and securities. The legislation defines most major cryptocurrencies, such as Bitcoin and Ethereum, as commodities. Furthermore, it assigns the Commodities Futures Trading Commission (CFTC) the power to regulate these commodities over the Securities and Exchange Commission (SEC).
An important part of the legislation …
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