US Cryptocurrency Bill on CBDC and FIT21: Lip Service or Balanced Regulation?
Journalist
- The US House of Representatives passed the FIT21 bill, which clarifies the regulatory requirements for cryptocurrencies.
- Next on the agenda is the US CBDC bill and its consideration by the US Senate.
US crypto regulation is making significant progress as digital assets have become a contentious and political issue in the run-up to the US elections.
Following the SEC’s repeal of Staff Accounting Bulletin 121 (SAB 121This week saw further progress on crypto regulation.
The Financial Innovation and Technology for the 21st Century Act was passed by the U.S. House of Representatives on May 22. FIT21 ActThe FIT21 crypto legislation passed with bipartisan support despite opposition from President Joe Biden.
FIT21 Crypto Bill
The FIT21 bill aims to create a regulatory framework for digital assets in the U.S. The bill seeks to transfer the majority of crypto oversight to the CTFC, which is considered more industry-friendly than the SEC.
The SEC retains authority over digital assets that meet the definition of a “security.” Coinbase founder Brian Armstrong called the FIT21 Act update a. Historic voteIf it becomes law, it would provide clarity and regulation for crypto.
The House of Representatives has passed the FIT21 bill, thereby creating clear crypto regulations.
The Blockchain Association, for its part, called this development “a turning pointfor the crypto industry.”The White House also reacted to the update. The White House expressed its opposition to the FIT21 bill, but insisted on its willingness to work towards a balanced regulatory framework for digital assets.
James Seyffart, an ETF analyst at Bloomberg, called the White House statement ”
lip service.”What are the chances that this is just lip service? “I guess time will tell.”
Next up in the Senate is the Republican-backed FIT21 bill. However, market observers believe that progress could stall until the next Congress takes up the issue in 2025.
House of Representatives votes on US CBDC after FIT21 bill
The US House of Representatives is now voting on another crypto-related bill, the CBDC Anti-Surveillance State Act.
HR 5043 This week. The bill is designed to prevent the Federal Reserve from issuing CBDC, also known as digital dollars, or using it as a tool of monetary policy.Tom Emmer was the Republican House Majority Whip who introduced this bill.
Maintaining your own website is easy. The US CBDC pushed by the Fed would be a threat to Americans’ privacy. The Biden administration has shown that it is willing to give up Americans’ right to privacy in exchange for a CCP-style CBDC surveillance tool.
If both bills are passed by the US House and Senate and become law, they will provide the industry with the regulatory certainty they have been seeking.
