30s Summary
As the 2024 US elections approach, cryptocurrency laws are becoming a major political consideration. There are numerous potential crypto regulations being discussed in the House and Senate. This includes the pro-crypto FIT21 law, and others like the CBDC Anti-Surveillance State Act, the Clarity for Payment Stablecoins Act, the Digital Asset Anti-Money Laundering Act, and the Technology Protection Act. Also on the table is the Equal Opportunity for All Investors Act and the Blockchain Regulatory Certainty Act. Finally, the pro-crypto Keep Your Coins Act is being considered. Crypto’s impact on future politics is becoming increasingly significant.
Full Article
The 2024 US elections are approaching and for the first time, crypto is becoming a hot political topic. The people behind crypto tech, as well as those who support it, are trying to get politicos to have more lenient policies towards the industry and see digital money as the future.
Right now, there’s no clear set of rules or guide for how digital coinage should be regulated in the US. That’s got people in power worried – from elected officials to crypto enthusiasts.
If you’re interested in how a presidential candidate might handle crypto laws, you should understand the laws being thought about in the House and Senate right now. Here are the main ones.
The Financial Innovation and Technology for the 21st Century Act (shortened to FIT21) was proposed by Pennsylvania Congressman Glenn Thompson in 2023. This law would lay down the rules for crypto by putting decentralized assets under the watchful eye of the Commodity Futures Trading Commission (or CFTC). But assets seen as securities would be regulated by the Securities and Exchange Commission (SEC). The House passed the bill in May 2024, and the Senate needs to do the same before it can head to the President’s desk.
Another lawmaker, Minnesota Representative Tom Emmer, proposed the CBDC Anti-Surveillance State Act in 2023. This bill would stop the Federal Reserve Bank from creating a digital form of US currency for consumers, basically restricting its role in the digital currency world. The bill is waiting for a vote in the Senate.
The Clarity for Payment Stablecoins Act is set to organize the rules around stablecoins, which are digital currencies tied to stable value assets, like the US dollar. The proposed law would allow smaller stablecoin issuers to be supervised at the state, not federal, level.
The Digital Asset Anti-Money Laundering Act, was first proposed by Massachusetts Senator Elizabeth Warren in 2023. This law would make sure crypto businesses follow the same reporting rules as traditional financial institutions. Warren is known for not being a fan of crypto, and this law hasn’t been popular with the crypto scene or passed through the House or Senate yet.
On the other hand, the Technology Protection Act of 2023, proposed by Iowa Representative Zachary Nunn, is looking to fight financial crime in the world of emerging financial technologies like crypto. The House has already passed it, and the Senate needs to do the same.
Nebraska Congressman Mike Flood came up with the Equal Opportunity for All Investors Act. This would let more people become “accredited investors” and get involved in private securities sales and offerings. This change could be a big deal because it lowers the barrier to investment.
Then there’s the Blockchain Regulatory Certainty Act. This was offered by pro-crypto Representative Tom Emmer. His bill would excuse blockchain developers and service providers from typical financial reporting rules, as long as they aren’t dealing with customer money.
Finally, we have the Keep Your Coins Act introduced by Ohio Congressman Warren Davidson. The purpose is to stop regulatory agencies from preventing US citizens from using self-custodial wallets to make transactions. It’s still unsure whether this bill will become a law or be widely supported.
No matter what happens, it’s clear that crypto is starting to make its mark on politics – how that unfolds remains to be seen.