U.S. Senate introduces comprehensive draft legislation for cryptocurrency regulation

Source: PortaldoBitcoin Original Title: U.S. Senate Introduces Draft Comprehensive Cryptocurrency Regulatory Bill | Analysis Original Link: https://portaldobitcoin.uol.com.br/senado-dos-eua-apresenta-rascunho-de-lei-regulatoria-abrangente-para-criptomoedas-analise/ U.S. lawmakers have unveiled a new bill, the Digital Asset Market Clarity Act, which establishes a clear regulatory framework for crypto assets, delineating jurisdiction between CFTC and SEC and addressing tokens, stablecoins, and disclosure requirements.

Among other things, the legislation would define when crypto tokens are considered securities, commodities, or something similar, providing the sector with the long-awaited legal clarity.

It would also grant the U.S. Commodity Futures Trading Commission (CFTC) — the sector’s preferred regulator, as opposed to the U.S. Securities and Exchange Commission (SEC) — authority to oversee spot cryptocurrency markets.

A section of the bill describes how banks can interact with digital assets, allowing a wide range of activities, provided they comply with legislation, which includes security and soundness rules. Financial holding companies may even engage in trading on their own behalf.

One of the most anticipated provisions concerns interest and rewards on stablecoins and largely aligns with what banks requested: it prohibits paying interest or rewards solely linked to holding stablecoins. However, it allows crypto companies to pay rewards or incentives to customers for certain activities, such as making a payment or participating in a loyalty program.

Bitcoin’s price surged and traded above US$ 95,000 after breaking through an important resistance, driven by improved risk appetite in global markets, amid expectations of regulatory changes that could favor the environment for cryptocurrencies.

Expectations of regulatory changes, anticipated since the election of current President Donald Trump at the end of 2024, are seen as potential catalysts for a rise in these assets’ prices; however, they have been limited over the past few months.

Senate Banking Committee Chairman Tim Scott released the latest version of the Digital Asset Market Clarity Bill on Tuesday morning. The bill aims to establish clear rules for digital assets, protect retail investors, ensure future innovation, and safeguard national security.

Another factor that supported the rally was the release of the US CPI, a measure of consumer inflation, with core inflation coming in below expectations, signaling a more controlled slowdown in prices. This reading reinforced expectations of a less restrictive monetary policy, favoring risk assets.

The initial boost came from the US CPI within expectations. The index showed an annual inflation rate of 2.7%, exactly as forecasted, while core inflation rose only 0.2% in the month, below expectations.

This data eliminated fears of an unexpected monetary tightening by the Federal Reserve and strengthened bets that the institution will keep interest rates steady at the meeting on January 28-29. As a result, the market quickly revised risk appetite, and Bitcoin responded strongly, because a scenario of controlled inflation tends to favor assets that serve as protection against dollar devaluation.