Bitrabo Editorial
The crypto industry is at a critical juncture as it braces for key legislative decisions in the US Congress. These forthcoming developments have the potential to reshape the regulatory framework governing digital assets in the country.
Key Crypto Legislations Facing Votes
One significant upcoming decision is the Senate’s vote on repealing Staff Accounting Bulletin No. 121 (SAB 121), which mandates the disclosure of digital assets held by financial institutions for clients on their balance sheets. Critics fear this could inflate assets and liabilities, imposing stricter reserve requirements.
A bipartisan effort in the House of Representatives sought to repeal SAB 121, and a similar move is anticipated in the Senate, although President Biden’s veto plans could pose a challenge.
Another bill set for a vote calls for the Department of Commerce to advise the President on blockchain matters and establish an advisory group for integrating blockchain into federal policies. Additionally, the FIT 21 bill, aiming to create a federal regulatory framework for cryptocurrencies, is on the agenda.
Political and Regulatory Landscape
Amidst increased SEC oversight and concerns raised by the Biden administration, emphasizing investor protection and financial system stability, tensions exist regarding the impact of current regulations on innovation. With former President Trump endorsing cryptocurrencies and their bipartisan appeal, crypto policy is gaining political significance.
Crypto’s market capitalization currently stands at $2.208 trillion, still below its peak in November 2021.
