A Golden Age for Crypto: Legislative Changes Ahead

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  • Policymakers plan to create the Financial Innovation and Technology for the 21st Century Act (FIT21), which passed a House Committee last year.
  • Discussions with Democratic colleagues are so far going on, elevating the probability that some factors of these bills could gain bipartisan support. 
  •  If it witnesses success, this working group could eventually give the crypto industry the clarity it has long been waiting for. 

Republican policymakers are intensifying their efforts to make clear and transparent rules for the crypto industry, making a bilateral working group to strike legislation on stablecoins and digital asset market structures. 

On February 4, at a Capitol Hill Press conference, this advancement was announced and indicated a coordinated effort between key House and Senate leaders to make a structured framework for crypto regulation, a matter that continued to exist in legal limbo for years. 

The working group consists of members from four major committees including the House Financial Services Committee, the House Agriculture Committee, the Senate Banking Committee, and the Senate Agricultural Committee. 

The initiating point 

It indicated that policymakers look at crypto regulation as a matter that extends over various sectors of financial oversight. Representative French Hill of Arkansas Senators Tim Scott and John Boozman and Representative Glenn Thompson will be heading in shaping these laws, illustrating current legislative efforts at the time of launching new offers. 

Policymakers plan to create the Financial Innovation and Technology for the 21st Century Act (FIT21), which passed a House Committee last year. On the other hand, the new stablecoin bill proposed by Senator Bill Hagerty on February 4, will be used as an initiating point for further discussions. 

Senate Banking Chair Tim Scott has cleared that speed is a prime concern, mentioning that he wishes to push the crypto bills through the Senate in the first 100 days of the congressional session. 

The golden age for crypto in the US 

Discussions with Democratic colleagues are so far going on, elevating the probability that some factors of these bills could gain bipartisan support. During the press conference, David Sacks, White House crypto czar, revealed his broader vision for virtual assets. 

He also referred to this prime moment as a golden age for crypto in the United States. His role is way far from Congress, as he is also looking for a different initiative within the White House to evaluate the probability of a government-held Bitcoin reserve. 

The executive order signed by Trump on January 23 made the base for that discussion, as well as directives to put a stop to the making of a central bank digital currency. 

For a long time, the need for clear and transparent rules has encouraged a lot of crypto companies to establish operations overseas, where laws have been more clearly interpreted. If it witnesses success, this working group could eventually give the crypto industry the clarity it has long been waiting for. 





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