Since 2022, Congress has seen the introduction of over 50 bills related to cryptocurrency. This week is particularly crucial, as a significant congressional committee is scheduled to vote on several of these bills, aiming to establish a regulatory framework for crypto assets.
The U.S. digital assets landscape is expected to undergo significant changes as these bills come up for debate and voting, marking the first time such crypto regulatory measures will be subjected to a congressional vote. This process also paves the way for potential voting by the House of Representatives on specific bills. According to Kristin Smith, the CEO of the Blockchain Association, while there have been important court decisions in the past, this legislative moment holds far greater significance for the crypto industry.
Within the surge of bills introduced, a select few are perceived to carry significant potential consequences for the industry if they receive approval. The attention and interest they are attracting from legislators and the crypto sector emphasize their significance and the possible far-reaching effects they may have.
Crypto Assets: Debating Their Nature
The House Financial Services Committee is preparing to evaluate several legislative proposals, one of which aims to resolve the ongoing debate over whether cryptocurrencies should be classified as securities or commodities. This classification issue holds significant importance as it has been a point of contention between the crypto industry and regulators. The recent partial legal victory of Ripple against the Securities and Exchange Commission (SEC) could potentially influence the decision-making process.
The proposed bill is a part of the Financial Innovation and Technology for the 21st Century Act and was introduced on July 20 by Republican members from the Agriculture and Financial Services Committees of the U.S. House. If passed into law, this bill aims to grant the Commodity Futures Trading Commission (CFTC) the authority to oversee digital commodities and also aims to bring clarity to the regulatory jurisdiction of the SEC.
Stablecoins
Additionally, there is another proposed bill aimed at establishing a regulatory structure to supervise stablecoins. The collapse of Terra had a significant effect on the entire cryptocurrency market. Previously considered relatively secure, stablecoins’ reputation was shaken by the failure of Terra, leading to a shift in how they are perceived. Among the proposed regulatory measures concerning stablecoins are the Stablecoin TRUST Act and the Stablecoin Innovation and Protection Act.
Although these bills have the potential to make a substantial impact on the crypto industry, they are expected to encounter obstacles in the Democratic-led Senate. Key figures such as Sherrod Brown, who leads the Senate Banking Committee, have expressed reservations about the necessity for further crypto regulation, which contributes to the likely challenges ahead. Moreover, Representative Maxine Waters, the leading Democrat on the Financial Services Committee, remains skeptical about the bills’ prospects.