17U.S. Senators Propose Comprehensive Oversight of Crypto Industry

Crypto Weekly

U.S. Senators Propose Comprehensive Oversight of Crypto Industry

Uncertainty on the regulatory front has hindered innovation in the blockchain or "Web3" space. The Securities and Exchange Commission (SEC) stands out as the biggest area of uncertainty in determining whether a cryptocurrency or other digital asset merits a Securities Act exemption. The SEC commissioners and members of the industry have repeatedly called for regulatory clarity, but little progress has been made until now.

A bipartisan bill has been proposed to regulate cryptocurrencies and other digital assets. At a time when partisanship is high ahead of the midterm elections, it is unclear whether the Senate will support the bill proposed by Senators Kirsten Gillibrand and Cynthia Lummis. Leading industry players in Washington have for the most part come to the conclusion that a long-term solution must come from the legislative branch

Besides the fact that Lummis and Gillibrand are from different political parties, they are both members of the Banking Committee, which oversees the Securities and Exchange Commission, as well as the Senate Agriculture Committee, which supervises the Commodity Futures Trading Commission. Lummis has long advocated cryptocurrency development and has invested heavily in the industry.

According to the bill, called the Responsible Financial Innovation Act the (RFIA) there will be legal definitions of digital assets and virtual currencies; the IRS will produce guidance for merchants accepting digital assets and charities accepting contributions in digital assets; and there will be a distinction between digital assets that are commodities or securities, something that has yet to be achieved. Lummis explained in an emailed statement that the bill "clarifies the regulatory framework for digital asset markets, provides a strong, tailored regulation of stablecoins, and integrates digital assets into existing tax and banking laws."

Under the RFIA, "digital assets" will be classified as commodities under the Commodity Exchange Act (CEA), thereby granting the CFTC authority to regulate crypto asset spot markets. By defining “digital assets” as commodities under the Commodity Exchange Act (CEA), the RFIA would give the CFTC primary authority over the spot market for crypto assets as a primary regulator.

It is important to note that the definition only covers fungible assets, which excludes "digital collectibles and other unique digital assets." Unless the funds are held by an entity registered with a federal or state regulator, digital asset merchants would be required to segregate customer funds under the CEA framework, and investments may be limited under CFTC rules. All of this will be applauded by the Web3 industry, which has generally viewed digital assets as more akin to commodities than securities.

The legislation imposes disclosure requirements on digital asset firms to ensure that consumers can make informed decisions, delineates agency responsibilities over various digital assets, such as Commodity Futures Trading Commission jurisdiction over Bitcoin, and requires a study on digital asset energy consumption, among many other proposals.

This development has led lawmakers on both sides of the aisle to support legislation that more closely examines digital assets. Senator Gillibrand said the bill provides "a regulatory framework that spurs innovation, develops clear standards, defines appropriate jurisdictional boundaries, and protects consumers."

CFTC chief Ross Behnam has long advocated for greater oversight of the crypto spot markets, citing the volume of transactions in Bitcoin and Ether, the two most valuable cryptocurrencies. Both of these cryptocurrencies are commonly accepted as commodities, rather than securities that the SEC would oversee.

It seems unlikely that the bill will pass this year. However, Sen. Pat Toomey (R-Pa.) suggested at CoinDesk's Consensus 2022 that legislation addressing stablecoins specifically may become law before 2023.

Crypto Weekly

Partnership of BoomLand and Polygon Studios Takes Blockchain Gaming to the Next Level

Robert Stone

Top Web3 Blockchain Gaming Platform, BoomLand, will enable millions of gamers to experience intuitive GameFi via a Polygonbased Supernet ecosystem in a new venture with 2 of the leading blockchain gaming companies. Polygon Studios is a leading global blockchain company partnered with BoomLand, one of the leading mobile gaming companies. Based on Polygon's Supernet technology, BoomLand is the first Web3 gaming platform, metaverse, and play-and-earn ecosystem.

Supernet's partnership with BoomLand is an essential milestone for Web3 gaming in the future. BoomLand's Web3 portfolio debuts its first title with 'Hunters On-Chain,' a Play and Earn mobile game supported by a lending and borrowing marketplace. In addition to bringing Polygon's Supernet technology to BoomLand players, this is a significant partnership for the development of Web3 gaming.

With Polygon studios, Web3 platforms are sustainable. This studio has worked with some essential Web3 projects and BoomLand plans to reduce latency concerns and congestion by creating an efficient and fast blockchain ecosystem that will run via a Decentralized Publishing Organization (DPO). Users can participate in governance functions through the native $BOOM token and influence how the ecosystem develops. “We can abstract the complexities of blockchain while providing essential features like verifying digital ownership, secondary markets, and incentives to play."

blockchain-based companies such as OpenSea, Sandbox, and Decentraland. Its experts have hosted 19000+ decentralized applications. It hosts more NFT and gaming dApps than any chain outside Ethereum.

“BoomLand evolves online games into a Web3 format that promotes playercentered economies,” said Hannibal Soares, CEO of BoomLand. BoomLand was founded as a Web3 Gaming Platform, which was conceived in 2008 in partnership with BoomBit, to publish outstanding games with over 33 million monthly active users. Over 1 billion downloads later, BoomLand has become an international gaming brand. Supernets are an advanced subchain of Polygon Blockchain, allowing developers to deploy decentralized applications without constructing their own network infrastructure. This collaboration marks Polygon's first integration of an ecosystem along the lines of blockchain publishing and gaming.

The company has over five times as many gaming- and NFT-based dApps as any other chain outside of Ethereum. Polygon Studios is able to work with the top blockchainbased companies, Web3, and NFT projects, such as OpenSea, Decentraland, Sandbox, and Decentral Games. Polygon Studios' VP of Business Development, NFT & Gaming, Steven Bryson-Haynes, said: "BoomLand will be essential in bringing non-blockchain natives to Web3 gaming. We're eager to see what they can create in the budding Supernet ecosystem."