Lummis-Gillibrand Responsible Financial Innovation Act

Lummis-Gillibrand Responsible Financial Innovation Act

This bill provides for the regulation of digital assets.

The bill delineates the jurisdiction over digital assets held by the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). For example, the bill provides that the SEC has jurisdiction over digital assets that provide their holders with financial interest in a business entity, while the CFTC has jurisdiction over digital assets that do not.

In addition, digital asset exchanges are allowed to register with the CFTC.

Under the bill, depository institutions are allowed to issue payment stablecoins. The bill sets forth requirements, including that institutions must hold in reserves 100% of the value of all outstanding stablecoins and allow stablecoins to be redeemed on a one-to-one basis.

The bill also provides for the tax treatment of digital assets, including an exemption from income tax for purchases using digital assets that result in a gain or loss of $200 or less.

Finally, the bill provides for various reports, studies, and consumer protection standards.