After a crypto bill leaks on Twitter, Senators introduce the official document

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The crypto world woke up to a surprise: the alleged Lummis and Gillibrand crypto bill leaked on Twitter on Monday night. On Tuesday morning, the two senators confirmed the bill that will create a regulatory framework for cryptocurrencies.

First, a set of documents with the ‘EMBARGOED’ watermark went around the social media, and later, user ‘bot_slam’ displayed images of the same documents. Shortly after, Twitter users started discussing the details of the bill and its repercussions.

The crypto bill consists of over 600 pages regarding the regulatory status of cryptocurrencies, DeFi, DAOs, exchanges, and more. The bill provides clarity over certain areas but still leaves doubts. There are some negative aspects for short-term investors and businesses, but there are also positive takeaways for the future of the crypto industry. 

In terms of compliance, DeFi companies, exchanges, DAOs, and stablecoin providers would have to become registered organizations. If not, they could be taxed. One of the most important clauses of the bill stated that any existing debt, equity, profit, or dividend would make the underlying asset lose its category of “digital asset commodity.” 

Anonymous projects and entities will have a hard time getting by because of the new disclosure laws. Yet there is some good news for investors: updated bankruptcy definitions state that invested assets will be returned to investors instead of liquidated. 

Here are some of the main points that will affect regular users: 

  • Digital assets are to be considered securities.
  • Non-custodial wallets won’t be delegalized.
  • Larger regulations are aimed at DeFi later this year.
  • NFTs will be considered a new asset class.
  • Stablecoins must be 100% backed by the currency to which they are pegged.

“Digital assets, blockchain technology and cryptocurrencies have experienced tremendous growth in the past few years and offer substantial potential benefits if harnessed correctly. It is critical that the United States play a leading role in developing policy to regulate new financial products, while also encouraging innovation and protecting consumers,” Gillibrand said in a statement.

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Agne Cimermanaite

Agne is a journalist who covers the latest trends and developments in the metaverse, AI, and Web3 industries for the Metaverse Post. Her passion for storytelling has led her to conduct numerous interviews with experts in these fields, always seeking to uncover exciting and engaging stories. Agne holds a Bachelor’s degree in Literary Studies from the University of Amsterdam and has an extensive background in writing about a wide range of topics including cybersecurity, travel, art, and culture. She has also volunteered as an editor for the animal rights organization, “Open Cages,” where she helped raise awareness about animal welfare issues. Currently, Agne splits her time between Barcelona, Spain, and Vilnius, Lithuania, where she continues to pursue her passion for journalism. Contact her on [email protected]

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