The bill’s big-ticket item is the border it draws between securities oversight and everything else – the long-awaited division that would give the SEC and CFTC their crypto marching orders. Broadly, it says that assets that don’t give the investor a financial interest in a business shouldn’t be considered securities, even if they “benefit from entrepreneurial and managerial efforts that determine the value of the assets.” Those issuing cryptocurrencies would make twice-yearly disclosures to the SEC, but as long as their tokens don’t represent debt or equity or tick other ownership boxes, they’d stay outside SEC reach – unless the agency wins a court challenge also outlined in the bill.
Source: A Second Round of the Lummis-Gillibrand Crypto Bill Elevates U.S. CFTC, Defines DeFi
