U.S. Congress Gears Up for Crypto Legislation: The Race to Regulate Digital Assets Heats Up

Hey there, crypto enthusiasts! Get ready for some exciting news from the U.S. House Financial Services Committee and House Agriculture Committee. They're cooking up legislation to oversee the crypto sector, and it's coming sooner than you might think! Let's dive into the nitty-gritty.

During CoinDesk's Consensus 2023 event, Rep. Patrick McHenry (R–N.C.), chair of the House Financial Services Committee, announced that they'll put together crypto legislation in the "next two months" after joint public hearings starting in May. When asked if President Joe Biden could sign the bill within the next 12 months, McHenry replied with a confident "yes." However, he did mention that legislating something new is always a challenge.

According to McHenry, the bill will address both securities and commodities regimes and tackle issues that are difficult to fix on either side. Sen. Cynthia Lummis (R-Wyo.), the other panelist during the session, said she looked forward to coordinating efforts with McHenry. She added that if the House moves first on crypto, it would "improve our chances" in the Senate.

Lummis stressed the importance of keeping a bipartisan approach to the subject, stating, "This is a bipartisan subject we need to address before the 2024 election." Congress has struggled to pass comprehensive legislation on crypto, but Republicans recently introduced a discussion draft that could mark a new starting point for negotiations with Democrats.

Lummis, also known as the Senate's "Crypto Queen," had introduced the bipartisan "Responsible Financial Innovation Act" with Sen. Kirsten Gillibrand (D-N.Y.) last year. She revealed that a new and improved version of the bill would be unveiled in six to eight weeks, with a stronger focus on national security and cybercrime.

Meanwhile, lawmakers continue to face pressure to legislate the industry due to incidents like the FTX crypto exchange meltdown and the recent collapse in crypto banking. McHenry referred to crypto's role in the U.S. banking crisis as "Operation Choke Point 2.0" and emphasized the need to fix the problem and provide clarity through legislation.

As the U.S. tries to catch up, other jurisdictions like the European Union have already introduced comprehensive crypto laws, such as the Markets in Crypto Assets (MiCA) law. Lummis acknowledged that "several jurisdictions are ahead of us," urging the U.S. to catch up with countries making strides in Web3 technology.

Stay tuned, folks! We'll be keeping a close eye on these developments as the world of crypto continues to evolve.

My name is Asteroids - well, that's my Hive name, anyways. I believe firmly in the future of Web3 technology and its potential to reshape our lives. I'm a serial entrepreneur and my aim in life is to always evolve and find new ways to leverage technology in my life.

As I continue to build things, I find new and important wisdom in all sorts of places. My goal here on Hive is simply to share that wisdom so that you can improve as well.

Working is as much about building good habits as it is about doing the actual work. Remembering this on a daily basis has changed my life for the better.

Until next time,

-A

Posted Using LeoFinance Alpha