In "Digital Assets Defined: How Lummis-Gillibrand Will Shape the Coming Fintech Debate," we provided a high-level overview of the Responsible Financial Innovation Act (the "Bill") and examined some of its significant takeaways. We then explored how the Bill would shore up stablecoins.
In this latest installment, we take a closer look at the Bill's contemplated regulatory jurisdiction as between the Securities and Exchange Commission ("SEC") and the Commodity Futures Trading Commission ("CFTC") in the digital assets space. In doing so, we will summarize the commissions' respective regulatory roles, and we will highlight the critical importance of the defined term "ancillary asset" in determining where regulatory authority over a particular digital asset would lie.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.