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The cryptocurrency industry is preparing to make crucial decisions
There are three major events taking place in Washington, DC, next week. These events are significant for the cryptocurrency industry in the United States
Let’s look at them in brief –
Biden’s potential veto on SAB 121 repeal
The Senate recently passed the HJ resolution. 109a resolution to overturn SEC Staff Accounting Bulletin No. 121. SAB 121 limits financial institutions from acting as custodians of digital assets.
Despite a rare bipartisan agreement in the Senate that garnered a 60-38 vote in favor of the bill, President Biden, with a bias toward Senator Warren and SEC Gensler, threatened the previous week that if the resolution reached his desk, he would use his veto power. Biden has about nine more days to decide, and his choice will have a significant impact on the SEC’s influence on the cryptocurrency industry.
During the voting process, Senator Cynthia Lummis, a leading proponent of repealing the law, stated that “SAB 121 is a rule under the Administrative Procedure Act, masquerading as accounting guidance. The SEC staff released it without the approval of a majority of the commission.”
Supporters of the bill argue that regulated financial firms are well equipped to handle custody of digital assets and that overturning the rule would reduce centralization risks.
SEC Decision on Ethereum ETF
The SEC’s decision on VanEck’s post Ethereum ETF the application must be received by Thursday. While many believe SEC Chairman Gary Gensler will reject it, political pressure is mounting. The Democratic Party fears that an anti-crypto stance could damage their electoral prospects.
Due to the lack of correspondence from the SEC, VanEck CEO Jan van Eck expressed skepticism about the approval, stating, “I would be amazed if the SEC said yes at this point.”
House vote on the FIT21 bill
THE Financial Innovation and Technology for the 21st Century Act (FIT21) is scheduled for a House vote by Wednesday or Thursday. This important cryptocurrency legislation aims to clarify the regulatory responsibilities of the SEC and CFTC regarding digital assets. The bill has garnered substantial support from the pro-crypto faction in Congress.
A letter from the Crypto Council for Innovation, signed by companies such as Coinbase and Circle, encouraged lawmakers to support passage of the bill.
“Regulatory clarity is arguably more responsible, safer for consumers and preferable to the status quo,” the CCI said.
All eyes will be on the US government next week, with decisions from President Biden, the SEC, and the House of Representatives having significant bearing on the regulatory landscape of the cryptocurrency industry.
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