Congress considers crypto legislation: What you need to know

Jun 20, 2022, 6:15 PM | Updated: 8:16 pm

MIDVALE, Utah — One word can describe the year, so far, for cryptocurrencies — ugly. After reaching record heights this past November, crypto has lost $2 trillion of its market value. Many experts chalk the mass sell-off to investors, fearing a recession, switching to less risky assets. Now, Congress is mulling over the Responsible Financial Innovation Act, a proposed groundwork for regulating cryptocurrencies.

“It’ll help investors to understand the risks, hopefully,” said freelance writer Brian Nibley.

While Nibley is not a financial advisor, he has covered cryptocurrencies for years. He said one thing the new bill does is it sets legal definitions for key words such as digital asset, smart contract, virtual currency, and others.

“It does provide a lot of clarification, particularly for institutional investors who have just been waiting for this for a long time,” he said.

The bill also defines most cryptocurrencies as commodities instead of securities. Nibley said that is important because it determines what agency will be largely responsible for regulating crypto.

“A commodity would be regulated under the CFTC (Commodity Futures Trading Commission), securities regulated under the SEC (U.S. Securities and Exchange Commission).”

And that is a big sticking point for the bill’s critics. They argue the CFTC is just too small. It does not have anywhere near the clout and ability as the SEC to fight cryptocurrency fraud, they say. But crypto insiders argue the commodity designation opens the door to faster growth.

“It’s not really regulation in the sense of clamping down on anything or stifling innovation or anything like that,” Nibley said of the bill.

The legislation also includes a tax benefit that could help businesses, like Bernie and Brothers Barbershop, that take crypto.

“I think it will be pretty commonplace at some point,” owner Bernie Hiatt said about cryptocurrency adoption.

When KSL met her last year, we were only her second customer to pay in bitcoin. In the new bill, buying goods or services under $200 with crypto would no longer require filing a report to the IRS. That makes buying stuff like a haircut with bitcoin, easier.

“She may have a few more customers if this passes,” Nibley said.

KSL 5 TV Live

KSL Investigates

Medical bill...

Matt Gephardt & Sloan Schrage

Lehi man says medical clinic refuses to work with his faith-based medical cost sharing plan

Miles is the newest member of the Littledike family. His father, Ryan, says Miles’ arrival in December went almost flawlessly.

2 days ago

Wendie Muhic is the frustrated owner of a 2007 Chevy Tahoe, that dies a lot....

Matt Gephardt & Sloan Schrage

West Jordan car owner says odometer fraud has left her stuck paying thousands on a lemon she can’t drive

Wendie Muhic is the frustrated owner of a 2007 Chevy Tahoe that dies a lot. Now she is left paying for it.

7 days ago

Woman texting...

Matt Gephardt

How crooks use texts to get your money, identity, or both.

If you used a mobile phone for any length of time, it’s likely you have gotten text messages that seem like an honest mistake that innocuous-looking text might have come from a scammer.

8 days ago


Daniella Rivera and Keira Fairmont

Treat and Release: How Utah weighs the risk of repeat sex offenders

The KSL Investigators examine Utah’s corrections system, responsible for treating and releasing people who commit sex crimes.

8 days ago

Viewmont High School softball field...

Matt Gephardt and Cindy St. Clair

High school softball team calls foul on field conditions, 2 years after Title IX complaint

The Viewmont High softball team played its 2023 season on a field with dead, patchy grass and none of the improvements promised by the school district. Why weren’t required upgrades completed? Matt Gephardt investigates.

9 days ago

Mechanic works on a car...

Matt Gephardt

Driver apathy keeps tens of thousands of unsafe cars on Utah roads

Every year, the vehicle history report business Carfax releases its study on how many cars are on the roads with unfixed safety recalls.

10 days ago

Sponsored Articles

Brunette guy in headphones playing games on his desktop computer...

PC Laptops

Looking For a New Computer? Use This Desktop Buying Guide

Choosing a new desktop computer can come with a lot of questions, so we created this desktop buying guide.

Portrait of happy boy playing and splashing water in the swimming pool...

Get Out Pass

Family Fun Activities in Utah You Have to Try This Summer

These family fun activities will entertain you all summer, so if you ever feel stuck in a rut wondering what to do, refer to this guide!

Woman IT specialist in elegant suit working on notebook computer in data center next to server rack...

Les Olson

Your Complete Guide to Outsourcing IT Services

This guide covers everything you need to know about the different benefits of outsourcing IT services to meet your small business needs.

diverse group of friends dance outside under string lights...

Lighting Design

5 Frequently Asked Questions About Outdoor Lighting

Read for the most frequently asked questions about outdoor lighting to help narrow the search for your home.

Stack of old laptops with dark background...

PC Laptops

Old Laptop Upgrades You Need to Try Before Throwing it Away

Get the most out of your investment. Try these old laptop upgrades before throwing it out to keep it running fast and efficient.

Happy diverse college or university students are having fun on their graduation day...

BYU MBA at the Marriott School of Business

How to Choose What MBA Program is Right for You: Take this Quiz Before You Apply!

Wondering what MBA program is right for you? Take this quiz before you apply to see if it will help you meet your goals.

Congress considers crypto legislation: What you need to know