- The crypto industry is facing significant legislative developments in the US Congress over the next two weeks, which could potentially reshape the regulatory landscape for digital assets in the United States.
- Three major crypto legislations are up for vote, including the repeal of Staff Accounting Bulletin No. 121 (SAB 121), a bill requiring the Department of Commerce to serve as the principal adviser to the President on blockchain issues, and the FIT 21 bill, which aims to establish a regulatory framework for cryptocurrencies.
- These legislative efforts occur against a backdrop of heightened regulatory scrutiny by the SEC and broader concerns expressed by the Biden administration regarding the alleged risks associated with crypto assets.
In the next two weeks, the crypto industry faces significant legislative developments in the US Congress that could reshape the regulatory landscape for digital assets in the United States. This article delves into the details of these upcoming legislations and their potential impact on the crypto industry.
Decisive Weeks for Crypto Regulation in the US
The crypto community is closely monitoring the Senate’s upcoming vote on the repeal of Staff Accounting Bulletin No. 121 (SAB 121). This regulation requires financial institutions to list the digital assets they hold in custody for clients on their balance sheets, a practice that diverges from traditional custodial asset handling. Critics argue that this could unjustly inflate a bank’s assets and liabilities, potentially stifling the growth of crypto custody services. The House of Representatives saw a bipartisan effort to repeal this regulation last week, and the Senate is expected to follow suit this week.
Key Legislative Items on the Agenda
Another key legislative item on the agenda is a bill introduced by Representatives Larry Bucshon and Lisa Blunt Rochester. This bipartisan initiative requires the Department of Commerce to serve as the principal adviser to the President on blockchain issues. The bill also proposes the creation of an advisory group within the Commerce Department to further integrate blockchain technology into federal governance and policy-making.
Furthermore, the upcoming vote on the FIT 21 bill, authored by Patrick McHenry, chair of the House Financial Services Committee, represents the first comprehensive attempt to establish a regulatory framework for cryptocurrencies at a federal level. This bill has garnered significant attention, and its amendments will be crucial in shaping its final form.
Political and Regulatory Context
These legislative efforts occur against a backdrop of heightened regulatory scrutiny by the SEC under Chair Gary Gensler and broader concerns expressed by the Biden administration regarding the alleged risks associated with crypto assets. The administration argues that SAB 121 is vital for protecting investors and maintaining stability in the financial system. Conversely, many in Congress and the industry believe that the SEC’s current approach hampers innovation and fails to provide clear compliance guidelines.
Conclusion
The next two weeks could prove to be decisive for the crypto industry in the United States. The outcome of these legislative developments could significantly reshape the regulatory landscape for digital assets. As such, all eyes will be on the US Congress as it deliberates on these critical issues.
