The cryptocurrency industry in the United States is facing a critical moment as lawmakers are preparing to introduce and vote on a comprehensive bill that would establish a clear regulatory framework for crypto products and services. The bill, which is expected to be considered by the House Financial Services Committee in the coming weeks, aims to provide certainty and clarity to crypto markets, alongside consumer protections.
This is the result of a bipartisan effort led by Representative Patrick McHenry, the chairman of the committee and one of the most vocal advocates for crypto innovation in Congress.
It would also clarify the responsibilities of different regulators, such as the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), over various crypto products, most of which operate more like commodities than securities. The bill would also create a pathway for crypto companies and exchanges to register with those agencies and comply with their rules.
Crypto Community Fully Oposses Any Attempts at Regulations
The bill is seen as a negative development by many in the crypto industry, who have been clamoring for the government to stay away from their personal finances and their right to buy, and sell, and trade cryptocurrency without interference.
It would also address some of the concerns raised by a controversial crypto tax provision in the recently passed infrastructure deal, which would require crypto brokers to report transactions to the Internal Revenue Service (IRS). The bill would modify the definition of broker and push back the reporting requirements to 2026.
Some Democrats on the committee have expressed reservations about the bill, fearing that it could enable bad actors or undermine investor protection. Moreover, the bill would need to pass the Senate as well, where key lawmakers like Senators Sherrod Brown and Elizabeth Warren have expressed even more skepticism about crypto products.
The bill would also need to overcome potential veto threats from President Joe Biden, who has not been very supportive of crypto innovation.
The cryptocurrency industry in the United States is at a crossroads. The upcoming bill could be a game-changer for crypto innovation and adoption, or it could be a setback that stifles growth and competition. The stakes are high for both lawmakers and crypto enthusiasts, who will be watching closely how the bill unfolds in Congress.
