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Bitcoin, ether, and the over 19,000 other cryptocurrencies in existence today could soon be regulated. 

Senators Kirsten Gillibrand and Cynthia Lummis unveiled bipartisan legislation for the cryptocurrency market on Tuesday, dubbed the Responsible Financial Innovation Act.

The framework would create "regulatory clarity for agencies charged with supervising digital asset markets, provide a strong, tailored regulatory framework for stablecoins, and integrate digital assets into our existing tax and banking laws," Lummis said in a joint press release with Gillibrand.

The Securities and Exchange Commission and the Commodity Futures Trading Commission have been at odds over which agency is responsible for policing the crypto sector.

However, both will be concerned if the bill gets passed as a law. 

"Understanding that most digital assets are much more similar to commodities than securities, the bill gives the CFTC clear authority over applicable digital asset spot markets, which aligns well with their current purview over other commodity markets," the senators said. That means bitcoin, ether, and other major crypto tokens will be regulated by the CFTC. 

On the other, the SEC would keep its regulatory oversight of digital assets that give investors a right to profits, liquidation preferences, and other financial interests in a business entity. 

As for stablecoins, the bill would keep consumers protected by forcing stablecoin projects to establish 100% reserve, asset type, and detailed disclosures. "This guarantees that a payment stablecoin holder can always redeem the stablecoin in exchange for the equivalent dollar value," the senators said.

The changes are likely to be friendly to the crypto industry and could help the sector flourish under more regulations. However, it would take years for the bill to turn into a law.