There is important news that crypto money investors have been eagerly waiting for for a while. Of course, this news is about the state of the regulations, it is considered more important than the Bitcoin ETF news these days. The US has been working on the regulation of cryptocurrencies for a long time. So what is the latest situation and how will altcoins be affected by this development?
Congressman Tom Emmer recently shared the changes needed in 2022, referring to the Congress Blockchain Group’s approach over the past year. Emmer said:
“The support of the Congress Blockchain Group has become a tool to advance Web3 policy”.
It is notable that the Congressional Blockchain Group is basically a group of Republicans and Democrats who aim to formulate policies around crypto, NFTs, DeFi and gaming by understanding the implications of blockchain technology. However, Emmer reiterated that education is key and crypto policy is still neutral. For this, he brought the Infra Bill in context and said:
“After the infrastructure bill debacle and misguided crypto tax change, key members on these committees have spoken up and supported legislative fixes.”
It is worth noting, however, that the 117th Congress has introduced 35 crypto-related bills over the past year. Cryptocurrency regulation included blockchain technology applications and the introduction of policy regarding central bank digital currency (CBDC). In addition, Congressman Emmer said:
“There are a few bipartisan, industry-backed proposals on the table… But we have yet to see anything pass Congress and become law. We will most likely see this change after the midterm exams, so it is more important than ever to start preparing our agenda for the next term”.
So what’s on the table?
First, Emmer explained that Patrick McHenry’s Sustaining Innovation in America Act would be “a good fix for the cryptocurrency payment on the infrastructure bill.” Next, the Congressman’s own Securities Net Act can help determine the enforcement of the securities contract on a token. Third, it circled Congressman Glenn Thompson’s Digital Commodity Exchange Act, which gives the CFTC the power to regulate crypto spot markets. Considering that no one is a clear controller for the crypto industry at the moment, this will be a very important step.
Emmer crypto tax, BTC ETF, crypto accounting standards, stablecoins, CBDC, know-your-customer standards (KYC), mining regulations, etc. continued to put “pressure” on regulators on issues. Meanwhile, an earlier report had stated that the cryptocurrency industry plans to spend 2022 lobbying “Congress and regulators” for legal clarity on crypto.
And we know from recent reports that Republican Senator Cynthia Lummis will also launch a comprehensive crypto bill this year. A senior government official told Bloomberg he could provide clear guidance to regulators if the bill becomes law. He also added that there will be clarity on the protections consumers enjoy, along with the supervisory duties of both the SEC and the CFTC, among other legislation.
However, as Emmer points out, crypto policy is not always bilateral. All crypto investors hope that the regulations, which are expected to be clarified this year, will result in favor of the crypto industry. If the opposite happens, the cryptocurrency ecosystem may experience a great depression.