Bitcoin
Bitcoin and Ethereum come together on proposed crypto legislation
Bitcoin (BTC-USD) and ethereal (ETH-USD) are rallying this week as investors are optimistic about a new regulatory framework and approval of an ether ETF that could boost the industry. Yahoo Finance Reporter Jennifer Schonberger has more information on new legislation that could change the crypto sector.
The House is expected to vote today for the first time on crypto legislation known as the Financial Innovation and Technology for the 21st Century Act, or FIT21. This bill would make the Commodity Futures Trading Commission (CFTC) the primary regulator of digital assets and establish consumer protections.
Republican lawmakers say FIT21 will bring clarity to the crypto industry, while Democrats believe it would effectively deregulate most cryptocurrencies by removing them from the purview of the Securities and Exchange Commission (SEC).
Voting will take place around 5pm ET today and is expected to pass. However, the future of FIT21 in the Senate remains uncertain.
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This post was written by Melanie Riehl
Video transcript
Let’s now move on to cryptography, both Bitcoin and Ethereum.
Gathering this week, investors look to Washington D.C. hopeful that regulation and new products could potentially expand the industry’s mainstream appeal.
Joining us now to define what’s at stake for crypto in Washington is ours.
Jennifer Schomer, Jen.
Good morning, Shana.
That’s right.
The crypto world is hoping for some gains this week in Washington as it pushes for a new regulatory framework and approval of an E ETF.
Today, the House decided to vote for the first time on comprehensive legislation on cryptography called the Financial Technology and Innovation for the 21st Century Act or as it is known as short fit 21.
This legislation that Financial Services Chairman Patrick Mchenry has been pushing for most of the year would establish the Commodities Futures Commission as the primary regulator of digital assets.
There would be clear divisions over what the CFTC will regulate and what would fall under the purview of the Securities and Exchange Commission, which has vehemently cracked down on the crypto industry with a litany of enforcement actions.
This legislation would also establish consumer protections and lend the type of custom fund mixing that played a role in the destruction of crypto exchange FTX in 2022.
Now, Republican lawmakers say this legislation will bring clarity to the crypto industry.
But the majority of Democrats led by House Financial Services Committee Ranking Member Maxine Waters opposed the bill. Waters warns that the bill would effectively deregulate most cryptocurrencies, removing them from the purview of the SEC.
The story continues
In a rare rebuke, Gary Ginzler gave a lengthy statement this morning about the legislation, saying, among other things, that it would create new regulatory loopholes and undermine decades of precedent regarding the oversight of investment contracts, placing investors in the capital markets at a measurable risk. .
The House expected to vote on this legislation around 5 pm this afternoon, where it is expected to pass the House largely thanks to support from Republicans and a handful of Democrats.
But the prospects in the Senate remain.
Dimmer Mchenry told reporters late yesterday afternoon that he is hopeful that a strong vote count will spur the Senate to take another look at this legislation.
Meanwhile, elsewhere here in Washington, the SEC reportedly faced a May 23 deadline, which ends tomorrow, for approving or denying an ETF E. When I asked the SEC for comment, they said they do not comment on individual filings.