U.S. markets closed
  • S&P Futures

    3,912.50
    +8.75 (+0.22%)
     
  • Dow Futures

    31,481.00
    +60.00 (+0.19%)
     
  • Nasdaq Futures

    12,078.25
    +37.75 (+0.31%)
     
  • Russell 2000 Futures

    1,775.00
    +5.20 (+0.29%)
     
  • Crude Oil

    110.51
    +0.94 (+0.86%)
     
  • Gold

    1,824.10
    -0.70 (-0.04%)
     
  • Silver

    21.13
    -0.04 (-0.18%)
     
  • EUR/USD

    1.0585
    -0.0001 (-0.01%)
     
  • 10-Yr Bond

    3.1940
    +0.0690 (+2.21%)
     
  • Vix

    26.95
    -0.28 (-1.03%)
     
  • GBP/USD

    1.2279
    +0.0009 (+0.08%)
     
  • USD/JPY

    135.3800
    -0.0660 (-0.05%)
     
  • BTC-USD

    20,784.74
    -180.37 (-0.86%)
     
  • CMC Crypto 200

    452.45
    -9.34 (-2.02%)
     
  • FTSE 100

    7,258.32
    +49.51 (+0.69%)
     
  • Nikkei 225

    26,937.61
    +66.34 (+0.25%)
     
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Bitcoin dips below $30,000 following bipartisan crypto bill proposal

In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Yahoo Finance Live anchors discuss bitcoin dropping below $30,000 following a bipartisan crypto bill proposal.

Video Transcript

- Two US senators unveiling their long awaited legislation regulating cryptocurrencies. All this as calls for new rules to protect investors reached a fever pitch following of course, Akiko, the collapse of that Terra Project. Really, what's interesting about this proposal is that it's coming from a bipartisan group of senators, Senator Lummis from Wyoming, a Republican, Senator Gillibrand from New York. It's going to cover a lot of things beyond stablecoins as well. But this is making a lot of waves, because it could be a real big step towards actually having some sort of formalized framework for regulation.

- Well, and the timing, you could argue, is really key, because of what we've just seen play out with Terra specifically. A little more clarity is what this bill is specifically looking to provide. Under the bill, to me what stood out, it defines most digital assets as commodities.

- Commodities, yeah.

- So that would go under the authority of the CFTC. There's been a lot of pushback from those within the crypto industry as well, about how the SEC has been looking at this space. Our morning team this morning, speaking to both senators behind the bill. And New York Senator, Kirsten Gillibrand, specifically talking about the next steps. Take a listen.

KRISTEN GILLIBRAND: This is step one of a comprehensive, thoughtful view of how to begin to regulate this industry with enormous amounts of input from regulators, stakeholders, industry participants, entrepreneurs. So that we have in mind their design, and their business plans, and their goals in trying to find a regulatory framework that meets the needs of the moment. And given the market challenges of the last several weeks, you need these rules of the road to create stability.

- Now this bill specifically defines these assets as ancillary assets that are sold in tandem with securities. And digital assets, this bill says, will only be defined as securities, if the holder of the coin, or cryptocurrency, has the same benefits as corporate investors do, including things like dividends.

- Yeah, and it's going to be interesting to see. Again, this is just a bill. And anyone that's watched Schoolhouse Rock knows that. This is definitely going to be a long process.

- There's a long road, long road ahead.

- This could look very different by the time it actually gets passed, if it ever does get passed. But what's important, is that it's really kind of the first substantial approach, if you will, or effort, to define exactly what is a security versus what is a commodity. And that's so important, because of the fact that there's that alphabet soup of regulators down in DC that have been saying, look, we are anxious and willing to go into the space and regulate, but we don't want to come up with the definitions, because it's not really in our statute to start saying those types of securities are securities, those types of commodities are commodities, or vise versa. Because that's the difference between whether or not It's supposed to be Chair Behnam over at the CFTC, or Chair Gensler over at the SEC, in terms of really kind of regulating those spaces. So this is really going to be a very interesting thing to watch, because you're going to start to see lobbying groups say, eh, we disagree with that, we agree with that, which means that there could be a lot of moving parts in all of this. So--

- Well, and also--

- It's under construction.

- Exactly. I mean, this could evolve in a big way. But number one, it's a bipartisan bill. That's a good starting point, right?

And then also, it comes from Senator Lummis, who has been very outspoken, and actually is quite knowledgeable about the crypto space. And that, I think, leads to at least those who are in the industry, to say, OK, maybe there is a framework here to begin with. The question to your point, is going to be whether regulators and others are going to be on board.

We haven't heard from the CFTC. We haven't heard from the SEC. Those comments will come later.

- Yeah, and to be clear. I mean, this is an extremely thorough bill. There's actually provisions in here that say the US Treasury has to make sure that stablecoins are complying with international sanctions. The Federal Energy Regulatory Commission would be involved in analyzing energy consumption. So very wide ranging, but of course, have to see how all of that develops down.