US senators Cynthia Lummis and Kirsten Gillibrand are seeking to push a bill that will categorize most cryptos as commodities and task the CFTC with much of the oversight.
The Responsible Financial Innovation Act bill is a combined effort of the House of Representatives and the Senate and is the initial attempt to streamline the sector.
The legislators have described the draft as bipartisan legislation that implements a full regulatory framework in digital assets and spurs financial innovation, transparency, and flexibility.
The draft has defined digital currencies as ancillary assets, intangible and fungible, sold with the purchase and the sale of a security. The assets are only exempted if they act as a security corporation to attract capital.
Cryptocurrencies will reportedly not be treated as traditional securities in the SEC scrutiny except in cases that it entitles the holders to like dividends, liquidation rights, or interests.