Senator Kirsten Gillibrand recently stated that the New York regulatory framework centered on cryptocurrencies was created to foster transparency, accountability, and certainty. She shed more light on the crypto regulation bill in an interview with Squawk Box.
In the interview, the senator was asked why Bitcoin and Ethereum were to be regulated by the CFTC while other crypto commodities were to be handled by the SEC. The senator responded by saying the most important goal of the bill was to create consumer protection. Kirsten Gillibrand went further to state that the purpose of each digital asset was considered before being classified as a security or commodity. The regulatory framework was then aligned around the purpose of the asset.
Decentralization vs. Regulation
The battle between decentralization and regulation is an eternal one. Questions have been asked as to how decentralized assets will be regulated. The goal of decentralization in the first place was to steer away from regulatory bodies.
Admittedly, the lack of regulation in the crypto industry is a double-edged sword. Crypto users have the freedom to utilize financial services without being subject to any authority. At the same time, this freedom exposes users to more financial risks.
Senator Gillibrand strongly believes crypto assets are equities and need to be regulated. When asked if she feels the senate will support her regulatory goals, she said:
“I do, and I think this is just day one. Our goal is to make sure this goes through the four committees of jurisdiction. It takes a long time to get the regulatory framework for a new industry.”
The four committees that will need to examine the bill before it is approved are the banking committee, the agriculture committee, the intelligence committee, and the financial services committee. These committees will have pieces of the bill, as they regulate only a part of the industry. Kirsten Gillibrand also looks forward to working with other industry players with similar goals to improve the bill.