Regulation
Bipartisan push for crypto regulation signals collaboration between White House and Congress
As the November election approaches, cryptocurrencies have become a major topic in the race for the White House. The Biden administration has notably shifted its approach to regulating digital assets, likely influenced by former President Donald Trump’s support for the nascent industry.
Biden administration calls for balanced crypto regulation
In a frame releaseThe Biden administration has opposed the passage of HR 4763, a bill that would impact the regulatory structure of digital assets in the United States.
Instead, the administration aims to work with Congress to establish a “comprehensive and balanced” agreement. regulatory framework which promotes responsible development and innovation in the crypto assets and payments sectors.
The administration also cited the lack of sufficient protections for consumers and investors in H.R. 4763 and emphasized the need for adequate safeguards while still fostering innovation.
Senate and House overturn SEC rule
The Senate also recently voted to rescind Staff Accounting Bulletin 121 (SAB-121), an SEC rule that imposed burdensome accounting standards on cryptocurrency assets held by financial institutions. The move follows the House’s approval of the same pro-crypto measure.
Additionally, the House is expected to consider the Financial Innovation and Technology for the 21st Century Act (FIT21), a bill aimed at establishing a regulatory regime for the crypto industry in the United States.
The potential approval of spot exchange traded funds (ETF) for Ethereum by the United States Securities and Exchange Commission (SEC) further indicates a change in trend in favor of cryptocurrencies.
According to a Fortune magazine report, President Biden intends to veto Congressional action overturning SAB-121. Still, lawmakers in his party, including Senate Majority Leader Chuck Schumer and Corey Booker of New Jersey, voted to repeal the SEC rule.
SAB-121 required financial institutions to treat crypto accounts as liabilities, making custody of digital assets economically unviable. A recent bipartisan analysis from the Congressional Research Service highlighted the limitations and potential costs associated with this rule, signaling the need for regulatory adjustments.
Trump campaign defends financial freedom
Although blockchain technology remains a bipartisan priority, the Trump campaign has taken a notable step in announcing its acceptance of donations in Bitcoin and various cryptocurrencies.
This is a significant milestone as the first major party presidential candidate to embrace cryptocurrency for fundraising purposes. The campaign incorporates digital assets such as Bitcoin, Ethereum, Ripple, Dogecoinand Shiba Inu, enabling donations through Coinbase Commerce.
The Trump campaign’s foray into cryptocurrency fundraising expands its digital fundraising operations and serves as a political statement supporting the role of Bitcoin and crypto in improving financial freedom and innovation.
As the race for the White House heats up, the Biden administration’s changing regulatory stance and the Trump campaign’s embrace of digital asset donations highlight the evolving digital asset landscape in policy and regulation.
The upcoming elections will likely further shape the trajectory of blockchain technology and its impact on the financial sector.
Featured image from Shutterstock, chart from TradingView.com