Key facts: The election year in the US is having an influence on new legislation on cryptocurrencies In recent months, the authorities' measures have hit the sector Lawmakers from the Financial Services Committee (FSC) of the House of Representatives of The United States will vote later this month on the Financial Innovation and Technology Act, also known as FIT21. The bill, approved by the FSC in July 2023, seeks to clarify the roles that the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) would have in regulating cryptocurrencies. This, based on the protection of merchants and consumers related to the use of cryptocurrencies. «For too much time, The US digital asset ecosystem has been plagued by regulatory uncertainty that has stifled innovation and left consumers unprotected,” FSC President Patrick McHenry said in a May 10 announcement. “FIT21 is a regulatory foundation to protect consumers and investors, but it also drives American leadership in digital finance,” said House Agriculture Committee Chairman Glenn “GT” Thompson in the same statement. . «As the collapse of FTX demonstrated, we need strong consumer protections and a functional regulatory framework to ensure the rapidly growing ecosystem of digital assets is safe for investors and consumers while ensuring the United States is a leader in blockchain innovation,” added Representative French Hill.
Response to uncertainty for the industry
The FIT21 bill would provide the CFTC with additional authority over assets considered “digital commodities.” Also would clarify the role that the SEC has on cryptocurrencies, Republican representatives agree. As BitcoinDynamic reported, a bipartisan vote was recently held in the House in favor of a resolution that annuls SAB 121 of the SEC. It limited the ability of banks to custody bitcoin and other cryptocurrencies, a measure that had been widely criticized by users and legislators. There is uncertainty about the approval of the Bill in the House of Representatives. Representative McHenry affirms that the legislation, the product of joint work of both parties, will be put to a vote in the plenary session. But he still faces the challenge of being approved in the Senate and signed by President Joe Biden.
Cryptocurrencies in the middle of the electoral race
Many legislators have brought the issue of cryptocurrency regulation to their campaigns, in an election year. Former President Trump himself said that he will protect the use of cryptocurrencies if he is elected. All this, in the midst of a wave of measures against actors in the bitcoin and cryptocurrency industry. In fact, a recent survey reveals that more than 50% of people surveyed fear that excessive regulation will suffocate the ecosystem in the country. Among those measures that the US authorities have taken is the one taken against Binance and its former executive director, who was sentenced to 4 months in prison. Also the recent arrest of the creators and developers of the privacy-focused bitcoin management tool Samourai Wallet; and cases such as the arrest of the creator of the Tornado Cash cryptocurrency mixer call into question the role of regulators in the United States.