Last week, the crypto industry in the United States moved a bit closer to solid regulatory clarity with a significant success in the U.S Congress involving two crypto-related bills. The House Financial Services Committee (FSC) voted 35–15 approving the Financial Innovation and Technology for the 21st Century Act. This significant legislation aims to lay out the ground rules for crypto companies regarding their registration needs with the CFTC or the SEC.
Alongside this act, the FSC also passed the Blockchain Regulatory Certainty Act, strongly backed by both Democratic and Republican representatives. The objective of this second act is to set up guidelines that will eliminate requirements and barriers for “blockchain developers and service providers”, which encompass multisignature service providers, miners, and decentralized finance platforms.
However, not all initiatives were met with equal enthusiasm. A number of lawmakers, including Representative Maxine Waters, decided not to back an additional proposed bill. This bill, known as The Digital Assets Market Structure Bill, was criticised for aligning too closely with the demands of the crypto industry while overlooking regulatory advice from the SEC.
Furthermore, the U.S. Senate gave the green light to the $886 billion 2024 National Defense Authorization Act, within which a crypto-related change was advanced. This amendment, backed by several senators, will require the establishment of examination standards for crypto and mandates the U.S. Treasury Department to conduct a research exercise aimed at eliminating anonymous crypto transactions. This includes transactions conducted via crypto mixers like Tornado Cash, known for rendering transactions private.
Given these developments, it’s clear that the regulatory landscape for the crypto industry in the U.S is continually evolving. On one side, these moves are encouraging, suggesting improved legal frameworks that can potentially enhance the stability and reputation of the industry. However, on the other, they also bring to light potential conflicts between lawmakers and industry operators, which may lead to strenuous compliance requirements and could stifle innovation. These developments might magnetically pull the crypto industry into the traditional finance world, introducing all its rules and limitations, but also its stability and trust. Undoubtedly, the decisions made today will set a precedent for future legislation globally, which could be a turning point for the path blockchain technology ultimately takes.
Source: Cointelegraph
