A few days ago, we talked about crypto swaying the election results. Remember? No, right? You must be busy doing nothing.
Well, we have an update. Positive for the industry. And once again, hate to be that guy, but we told you first.
In a historic move, US house approves FIT21 bill with a surprisingly high majority. What does that mean? What’s cooking in that part of the world? Let us unfold.
What Happened?
Big news from the U.S. House of Reps! They just passed the FIT21 bill, a major win for the crypto world.
This bill sets up regulations for digital assets markets and secured a solid 279-136 vote, with even some Democrats jumping on board.
It’s the first time a big crypto bill has cleared a chamber of Congress.
Next stop: the Senate, but it’s a bit murky there since they haven’t done as much work on crypto.
President Biden and SEC Chair Gary Gensler aren’t fans, though.
Biden didn’t say he’d veto it, but he’s not happy. Gensler thinks it messes with existing securities laws.
Maxine Waters also threw some shade, saying it rewards crypto businesses dodging securities laws.
Before the vote, there were some debates and amendments from Reps. Casar, Pettersen, Norman, and Perry. But overall, this is a huge step for crypto in the U.S. Let’s see what happens next!
What does Gary Say?
SEC Chair Gary Gensler is going rogue, saying he doesn’t need new laws to regulate crypto. The White House and others are ready to set up a balanced regulatory framework, but Gensler’s like, “Nah, we got this with current laws.”
Even Treasury Secretary Janet Yellen wants Congress to pass laws for stablecoins and the crypto spot market.
The White House dropped a statement saying they’re all in for new digital asset policies to protect investors. But Gensler’s holding his ground, thinking the SEC already has enough power.
Some folks are bummed, saying new laws would make Gensler a better regulator. The FIT21 bill is the first big crypto legislation getting a vote in Congress, so it’s a hot topic.
Gensler’s stance is causing some major friction because other regulators, like CFTC Chairman Rostin Behnam, are saying Congress needs to act. Behnam believes that if the FIT21 bill passes, his agency can build a regulatory framework within 12 months.
This has led to a big debate. While the White House is pushing for a comprehensive and balanced regulatory framework, Gensler is sticking to his guns, saying the SEC doesn’t need new legislation. Lawmakers who are disappointed in Gensler think new laws would make him a better regulator and argue that current laws leave a gap in oversight, especially for non-securities like Bitcoin.
So, while Gensler holds his ground, the friction between regulators and lawmakers continues to heat up. Stay tuned, fam!
Impact on Market:
The passage of the FIT21 bill by the House is a major legislative milestone for the crypto industry. It aims to establish a clear regulatory framework for digital assets, which is expected to bring more stability and legitimacy to the market. This could lead to a positive sentiment among investors, potentially driving up prices in the short term.
The bill’s support from both Republicans and some Democrats indicates a strong bipartisan backing, which adds to the market’s confidence in the regulatory direction.
Despite the potential benefits, the transition period as the bill moves through the Senate and possibly faces further opposition could lead to increased market volatility. Investors might react to any news or developments related to the bill’s progress, causing price swings.
But then, one thing is for sure: while Trump played his crypto card with all his NFTs and promises to retain crypto talent in the country, this move becomes even trickier for Mr. Biden. Veto it, and you make Trump’s case stronger. Don’t veto it, and risk a feud with the SEC.
Either way, I would be watching this with keen interest.
