Republicans present new crypto bill

More rights for the CFTC, less for the SEC: A bill should bring more clarity to regulation of the U.S. cryptocurrency market.

A few days after Ripple's legal victory against the SEC, a group of Republicans introduced a bill to define the regulatory duties and powers of the Commodity Futures Trading Commission and the Securities and Exchange Commission (CFTC and SEC).

The "Financial Innovation and Technology for the 21st Century Act" seeks to divide regulatory powers between the two agencies, but give the CFTC control over digital asset markets. This includes exchanges.

At the same time, the proposed Market Structure Act states that digital assets should be reclassified. Thus, the signatories conclude that 70 percent of all digital assets are commodities and not securities. A "investment contract" makes a token no effect yet, according to additional information the Republicans attached to the bill. Signatories include Republican Congressmen Glenn Thompson of Pennsylvania, French Hill of Arkansas, Dusty Johnson of South Dakota, Tom Emmer of Minnesota (pictured) and Warren Davidson of Ohio. Hill, meanwhile, will head the newly formed "Subcommittee on Commodity Markets, Digital Assets and Rural Development."

After months of negotiations, Republicans are apparently satisfied with their bill. Glenn Thompson, current chairman of the U.S. House Agriculture Committee (the committee that oversees the Department of Agriculture), said:

"In recent months, our teams have gathered extensive feedback from market participants and worked diligently to draft legislation aimed at closing existing gaps and ensuring U.S. leadership in financial and technological innovation."

However, it remains to be seen whether the bill will be passed. In particular, the limitations on the SEC's powers are meeting resistance within the Democratic Party.