Crypto legislation advances amid election year tensions

The United States is getting ready for the 2024 elections, and there are a lot of changes in the legislative system concerning cryptocurrencies. These changes include both the achievements and the difficulties. The US House of Representatives made a significant step by voting for Joint Resolution 109, with 228 members in favor and 182 against. Thus, a House-floor vote passed the first cryptocurrency bill. The Securities and Exchange Commission’s Staff Accounting Bulletin 121, a barrier to the strict regulations currently governing the cryptocurrency industry, directly links to this resolution.

Even though the resolution was successful at first, it still has a long way to go before it becomes law. Its next stop is in the Senate, where its fate is uncertain since the Democrats hold the majority. On the contrary, 21 House Democrats voted against their party’s stance and supported the resolution. Nevertheless, even if it gets through the Senate, President Biden has stated that he would probably veto it. The fear of potential adverse effects on financial stability and market predictability led to this decision.

A number of cryptocurrency bills have been passed out of committee by the House; however, the overwhelming majority of these bills have not been brought to the floor for a complete vote. Although they all passed markup, a full vote has not yet been scheduled for the Clarity for Payment Stablecoins Act, the Keep Your Coins Act, the Blockchain Regulatory Certainty Act, and the Financial Technology Protection Act. 

Nevertheless, another crucial legislation named the Financial Innovation and Technology for the 21st Century Act, or FIT Act, is moving ahead and is expected to be presented for a vote on the House floor at some point this month.

On the contrary, the Senate has been less involved in creating laws and regulations for cryptocurrency than the House of Representatives. Both parties support some bills, like the Digital Asset Anti-Money Laundering Act proposed by Senators Elizabeth Warren and Roger Marshall, but they have yet to progress beyond committee hearings. Moreover, Senators Cynthia Lummis and Kristen Gillibrand’s efforts to advance their Responsible Financial Innovation Act have encountered obstacles.

The current legislative attempts on cryptocurrency demonstrate the unceasing changes and difficulties in regulating this fast-paced market. These issues have led to intense discussions in Congress, which are similar to the debates on how to strike a balance between promoting innovation, implementing strong regulations, and protecting financial stability. While lawmakers are developing the legislative process, the direction and consequences of these regulations on the cryptocurrency industry are crucial topics to monitor, especially with the upcoming elections that can shape future regulatory strategies.

Roxanne Williams

Roxanne Williams has recently joined as a market reporter for CryptoNewsZ - the 24/7 crypto news site, where she produces recent stories, technical analysis and price updates on world's leading cryptocurrencies.

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