US Treasury Secretary Janet Yellen explained that investing in cryptocurrencies is a “very risky option” to include in the retirement plans of average American savers, and it would be reasonable for Congress to face the danger.

“It is not something that I would recommend to most people who are saving for retirement, (…) For me it is a very risky investment.”

The Secretary of the Treasury considers it “reasonable” that Congress regulates the type of assets that could be included in “retirement vehicles with tax benefits, such as 401 (k) plans (…)” I am not saying that I recommend it, but I think it would be reasonable,” she said.

Yellen made the remarks in response to a question about Fidelity Investments’ initiative to add a crypto option to the pension plans it manages.

Bitcoin as an option as a store of value

Last April, the American company specialized in asset management and pension funds Fidelity Investments announced its intention to offer 401 (k) with Bitcoin. However, savings programs in the United States have a fairly strict regulation, which is why the position established by the Secretary of the Treasury, nor that assumed by the Department of Labor, is not surprising.

For her part, Senator Cynthia Lummis believes that the position taken by the Department of Labor could be wrong. In her opinion, an “intelligent investment strategy combines assets that generate short-term profits and assets that can prevent the funds from depreciating.” In her words, Bitcoin is a very good option to avoid the depreciation of money. “BTC really shines as a store of value,” the senator indicated.

M. Rodríguez

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Source: buahmerahpapua.web.id

La entrada Retirement plans in crypto represent a risk apareció primero en Bitfinance.

The US Senate is studying the bipartisan bill called the Responsible Financial Innovation Act, which would give cryptocurrencies the status of commodities, such as oil or coffee, and would be under the supervision of the Commodities Futures Trading Commission (CFTC).

The bill was introduced by Democratic Senator Kirsten Gillibrand and Republican Senator Cynthia Lummis, who are part of the Senate Committee on Agriculture and the Senate Banking Committee and believe that the Securities and Exchange Commission (SEC) should regulate cryptocurrencies.

Lummis explained that the Responsible Financial Innovation Act is a bipartisan framework that provides “regulatory clarity for agencies tasked with overseeing digital asset markets, provides a strong and tailored regulatory framework for stablecoins, and integrates digital assets into our tax laws. and existing banks.

For her part, Gillibrand pointed out that the bill “will provide clarity to both the industry and regulators, while maintaining the flexibility to take into account the continuous evolution of the digital asset market.”

Cryptocurrencies market, the Wild West

For a long time in the US, the regulation of cryptocurrencies has become what some call a “turf war” because the body that should be in charge of supervising digital currencies is not yet clearly defined.

Cryptocurrency investors believe that the SEC should not “supervise decentralized digital tokens because it doesn’t make any sense.” However, critics of the project point out that granting supervision to the “CFTC is equivalent to leaving the market unregulated.”

SEC Chairman Gary Gensler in 2021 called the crypto market a “Wild West” and admits that digital currencies are similar to stocks and should be treated as such and not commodities.

M. Rodríguez

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Source: themoneypost.io

La entrada US Senate considers regulating cryptocurrencies as commodities apareció primero en Bitfinance.

The cryptocurrency bill proposed by Senator Cynthia Lummis was recently leaked via social media.

This proposal addresses the regulation of digital assets in a comprehensive manner, as well as establishing the steps to be followed to introduce them into the financial system of the United States.

The formal presentation by Lummis is scheduled to take place this June 7. However, this proposal reached the media beforehand thanks to a leak on Twitter.

The bill suggests the creation of a self-regulatory institution to be in charge of cryptocurrencies and other digital assets. The draft also indicates that it seeks to make the Commodity Futures Trading Commission (CFTC) the regulator of the crypto market. However, this plan could conflict between said commission and the Securities and Exchange Commission (SEC).

The proposed regulation increases the power of regulators to control and regulate the activity of market participants in terms of requirements and sanctions.

K. Tovar

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Source: Diariobitcoin

La entrada Bill for cryptocurrencies in the US was leaked apareció primero en Bitfinance.

The Senate of the United States approved, with 69 votes in favor and 30 against, the Infrastructure Law, opening the possibility of an investment of 1.2 trillion dollars in the public works of the nation. However, the document contemplates a provision that will have significant implications for the crypto industry.

In the approved Infrastructure Law project, they extend the requirements for tax declaration to companies that act as “brokers” of cryptocurrencies. This would apply to exchanges and other money service companies selling digital assets, but there is no clarity in the document to determine whether it will apply to cryptocurrency miners, validators, and software developers.

During the time of the discussion of the project, some senators proposed amendments without obtaining satisfactory results. Lawmakers Pat Toomey of the Pennsylvania State Republican Party and Cynthia Lummis, Republican of Wyoming, noted that a bipartisan agreement had been reached that would allow for an amendment that could satisfy the crypto lobby.

Senator Toomey requested the incorporation of this amendment in the document, by unanimous consent, but Congressman Richard Shelby opposed and the measure could not be considered.

Reactions from crypto lobbies and crypto industry non-profit organizations voiced their disagreement, stating that “the Infrastructure Act was clear and substantial damage to the oversight that these tax filing requirements could entail for cryptocurrency users.”

For their part, the four co-chairs of the Congressional Blockchain Committee also expressed their disagreement and through a note they indicated “their concern about the new tax declaration mandates”, stating that “the tax declaration of cryptocurrencies is important, but it must be done correctly.”

According to the established procedures, the approved bill will go on for discussion in the House of Representatives, which is scheduled for the fall season.

M. Rodríguez

Source: decrypt

La entrada US Senate passes infrastructure law apareció primero en Bitfinance.