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Crucial Vote in the U.S. on Crypto Regulation

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TL;DR

  • The U.S. House of Representatives will vote on the SAB 121 bill between July 9 and 10, 2024, crucial for crypto regulation.
  • SAB 121 requires custodial entities to report their crypto holdings to the SEC, sparking intense legislative debate.
  • Biden’s veto of SAB 121 exposes political divisions; the crypto community could influence the November elections.

The U.S. House of Representatives is on edge ahead of the imminent vote on the SAB 121 bill, scheduled between July 9 and 10, 2024. This bill could have significant implications for cryptocurrency regulation, with both proponents and opponents of the crypto industry closely watching the vote.

SAB 121 requires entities that custody cryptocurrencies to report their holdings to the SEC. The legislative proposal, initially supported by a majority in the House (228-182) and the Senate (60-38), has sparked intense debate about its potential repercussions.

On one hand, supporters argue that the bill will provide clarity and additional investor protection by requiring more detailed disclosures. They believe this measure could enhance confidence in cryptocurrencies by establishing stricter standards for entities managing digital assets.

However, critics fear that mandating custodial firms to treat cryptocurrencies as liabilities could discourage banks and other financial institutions from participating in the sector, thus limiting innovation and competition. Concerns stem from the perception that such regulations could create additional barriers to widespread adoption of emerging technologies.

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Pro Crypto Policies Could Shape U.S. Elections

Political divisions over cryptocurrency regulation were laid bare after President Biden’s veto, despite initial widespread support. With over 21 million American citizens owning cryptocurrencies, the crypto community in North America has gained significant electoral weight, especially with the upcoming November elections. Benefiting or harming these users could sway the electoral balance for a pro-crypto candidate, a quality Joe Biden has shown not to possess.

Overturning Biden’s veto will require a two-thirds majority in both chambers of Congress, a challenging but not insurmountable goal. Experts indicate this will be a crucial test to determine the future direction of crypto regulation in the United States, impacting not only the financial industry but also the country’s internal political dynamics.

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