RFIA Seeks Crypto Clarity And Consumer Protection

With more investors participating in cryptocurrency markets, the need to clarify and modernize the rules governing digital asset trading, buying, selling, and taxation has become ever more pressing. Senators Cynthia Lummis (R-WY) and Kristen Gillibrand (D-NY) responded earlier this month by introducing the Responsible Financial Innovation Act (RFIA) as a measure to protect consumers, brokers, financial institutions, coin issuers, investors, and other market participants. RFIA would expand the Commodities Future Trading Commission's (CFTC) purview into the crypto asset sector and update Securities and Exchange Commission (SEC) parameters for regulating and taxing digital assets. The bill would distinguish between crypto "ancillary" assets to be overseen by CFTC, and crypto "securities" which, like stocks and bonds, would fall under the SEC's jurisdiction. Other provisions contained within RFIA would include consumer protection reforms, clearer definitions of "broker"