Two bipartisan senators filed a bill on Tuesday calling for the creation of new regulations for cryptocurrency, and to give the Commodity Futures Trading Commission (CFTC) the mandate to enforce the rules. 

Spearheaded by Republican Senator Cynthia Lummis, a staunch cryptocurrency advocate, and Democratic Senator Kirsten Gillibrand, the bill is a major move by U.S. lawmakers to regulate cryptocurrency markets.

The bill stipulates the CFTC instead of the Securities and Exchange Commission, as the primary regulatory body for crypto products,  which operate more like commodities than securities. The CFTC is viewed as a less rigid regulator for cryptocurrency, as the SEC demands  that crypto products comply with a number of securities requirements.

With the midterm elections a mere months away, the bill is not expected to become law but will serve as a firestarter for future discussions on how to regulate crypto markets. 

Moreover, the bill would create new regulations for “stablecoins,” requiring stablecoin issuers to have high-quality liquid assets equal to the value of all outstanding stablecoins as well as public disclosures of these holdings.