- The 118th US Congress commenced on January 3, 2023.
- Initial months are to be focused on FTX and stablecoin regulations.
- Crypto taxes, agency jurisdictions etc., to follow.
There are two distinct views regarding cryptocurrency, and it’s either good or bad. As the United States Congress resumes, the current hottest topic will be for the lawmakers for and against the crypto industry.
More than 100 crypto industry advocates are struggling to keep the right balance between protection and innovation, according to the reports of the Blockchain Association.
On January 3, 2023, 118th United States Congress started in Washington D.C. and would continue until January 3, 2025, during President Joe Biden’s first term’s final two years.
The FTX saga, being connected with lobbyists and some lawmakers, and its sheer scale has put the crypto industry in the cross hairs. And this Congress would be very important for the industry as many regulations and bills are expected to be discussed.
Iššūkiai priekyje
Director of Government Relations at the Blockchain Association, Ron Hammond, highlighted the opportunities and challenges for the Congress on the day it resumed by a Twitter thread on January 3, 2023.
Sam Bankman-Fried, became enemy number one on Capitol Hill, who was once a favorite political donor. Hammond added that many people in Washington are summing up FTX with the whole crypto industry.
FTX meltdown due to its massive scale could initiate “once-in-a-decade legislation,” To top this fear, there are many regulatory frameworks in working, such as the Lummis-Gillibrand bill. The bipartisan bill to address stablecoin regulation, agency jurisdictions, crypto taxes, banking & interagency coordination.
As per Hammond, the initial few months will be focused on FTX, and Stablecoin regulation will be a priority.
Smaller bills like the spot market and stable coin regulation will be moving slower, at least until the frame is clearer on FTX from congressional hearings and the court.
Mūšis viduje
The battle line is drawn between Patrick McHenry, pro-crypto Chair of House Financial Services and Sherrod Brown, anti-crypto Chair of Senate Banking. Brown took extreme measures last month, suggesting a crypto ban.
Agricultural Committees have also proposed regulations in crypto, as they advocate for the Commodity Futures Trading Commission (CFTC) to oversee the regulations.
Kongresas could also touch on some new topics, such as Non-fungible Tokens (NFTs), Decentralized Autonomous Organizations (DAOs), and Decentralized Finance (DeFi), as they are like hotcakes, or go to options because of enforcement actions last year, hinted Hammond.
Positives for the Industry
A positive side is that, according to Hammond, a strong team in Washington continues to gather talents from other industries for advocacy.
Formerly this group comprised less than a dozen people from the Blockchain Association, and few other groups are now 100+ strong policy experts. And this is a reasonably positive result that can be expected.
Ripple CEO Brad Garlinghouse feels optimistic about the new Congress and its supposed outcomes.
Nancy J. Allen yra kriptovaliutų entuziastė ir mano, kad kriptovaliutos įkvepia žmones būti savo bankais ir nutolti nuo tradicinių pinigų keitimo sistemų. Ją taip pat domina „blockchain“ technologija ir jos veikimas.
Source: https://www.thecoinrepublic.com/2023/01/04/us-congress-commences-fate-of-crypto-hangs-in-the-balance/