Bitcoin and other cryptocurrencies, such as popular coins like XRP and Ethereum, are ready for a historic vote in Washington next week, even as a Wall Street bitcoin storm is building.
As Twitter CEO Jack Dorsey reveals his plan to skyrocket the price of bitcoin, the price of bitcoin has surged 10% in the last week, returning to $70,000 per coin and driving up the value of ethereum, XRP, and other cryptocurrencies.
US lawmakers are about to hold a historic cryptocurrency vote, which some of the largest crypto companies have deemed “crucial” for the survival of the US industry, following Shark Tank billionaire Mark Cuban’s severe warning to President Joe Biden on cryptocurrencies.
The Commodity Futures Trading Commission (CFTC) would be elevated to a major crypto regulator and the Securities and Exchange Commission (SEC) would be given less authority over certain aspects of the bitcoin and cryptocurrency market if the Financial Innovation and Technology for the 21st Century Act (Fit21) is approved by House lawmakers next week.
Along with creating consumer protections for cryptocurrency custody and bankruptcy treatment, it would also erect barriers against reckless behavior.
The Crypto Council for Innovation, an alliance of crypto businesses and organizations that includes significant exchanges Coinbase and Kraken, investor Andreessen Horowitz, and the vast Digital Currency Group crypto empire, wrote an open letter to lawmakers stating that, by passing this legislation, we can accelerate the growth of blockchain technology and digital assets, fostering financial inclusion and protecting national security. Preserving the United States’ leadership in financial innovation is imperative.
Due to the absence of clear laws and regulations governing the cryptocurrency space, several companies have threatened to completely withdraw from the U.S. market. Industry executives have expressed dissatisfaction about the lack of a legal path to market for cryptocurrency financial products.
Despite President Joe Biden’s vow to vote against the resolution if it reached his desk, Congress this week overturned an SEC crypto accounting policy that had prohibited Wall Street’s largest banks and other similarly closely regulated financial companies from custodying bitcoin and other cryptocurrencies.
Author of the Crypto is Macro Now newsletter, Noelle Acheson, noted in a note that this is a huge matter. This does seem like a political signal that points to a growing rift inside the Democratic party, at the risk of falling victim to the echo chamber gimmick of cryptocurrency.
Now that the law is on his desk, President Biden has about 10 days to sign it or veto it. It would become law without his signature if he didn’t veto it.
The Republican from Wyoming and proponent of cryptocurrency, Senator Cynthia Lummis, who spearheaded the Senate resolution, described the advisory as “a disaster” that failed to safeguard customers.
In a statement, Lummis said, “This is a win for financial innovation and a clear rebuke of the way the Biden administration and chair Gary Gensler have treated crypto assets.” It also marks the first time that crypto legislation has been voted by both chambers of Congress independently.
Since a number of Wall Street spot bitcoin exchange-traded funds (ETFs) were approved in January and raised the prospect of enormous fees for cryptocurrency custodians, the bulletin has gained significant attention.
It took a court order for the SEC to approve the much anticipated spot bitcoin ETFs.
