Is Congress Softening Up on Cryptocurrencies? Not really – DL News

• Are US politicians easing restrictions on cryptocurrencies?
• The recent vote on SAB 121 is not good evidence of a softened position in the Senate.

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Don’t look now, but Congress is softening on cryptocurrencies.

Even Democratic Party lawmakers are reconsidering their long-standing antipathy toward the industry.

At least, that’s the narrative press coverage AND op ed as cryptocurrencies emerge as a surprise election issue.

But there is not much evidence to show that an epochal change is really taking place.

Good signs? Yes, but the new favorable policies that cryptocurrencies have long desired remain a big unknown.

Cryptocurrency experts have pointed to Congress’ bipartisan vote to abolish a policy called SAB 121 as evidence of growing support for the cryptocurrency industry.

This is especially interesting when it comes to the Senate, where cryptocurrencies’ hold is considered weak.

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More information can be found on SAB 121 Here. But essentially, it is regulatory guidelines that prevent big banks like JPMorgan Chase, BNY Mellon, and State Street from entering the cryptocurrency custody industry.

Wall Street wins

But it’s one thing to support SAB 121 and another to support encryption.

First, the bill to repeal SAB 121 is not really a cryptocurrency bill.

If SAB 121 were abolished, the big winners would be the giants of Wall Street.

The banking lobby he made it clear wants SAB 121 eliminated, especially after the approval of Bitcoin spot exchange-traded funds in January.

Congress is happy to give Wall Street what it wants, especially when it asks for something that benefits consumers.

Which brings me to my second point: Virtually everyone, from pro-crypto lobbyists to hardcore skeptics, thinks SAB 121 is misleading

Of course, President Joe Biden vetoed the repeal.

But outside of a small Democratic circle, you won’t find many arguments against allowing savvy, heavily regulated banks to safeguard crypto assets.

So, to summarize, even generally anti-crypto senators might see an advantage in ceding the industry to their friends in the powerful big bank lobby.

A quick look at the votes on the SAB 121 bill confirms my opinion.

Democratic Senators Gary Peters, Marco Kelly, AND Jon Tester everyone voted to eliminate SAB 121.

Peters and Kelly joined arch-cryptocurrency skeptic Elizabeth Warren’s anti-cryptocurrency bill, while Tester once said of cryptocurrencies that he was “all bullshit”.

What about the House of Representatives?

Experts point to the passage of the FIT21 law in May as evidence of support in the lower house of Congress.

But DC insiders say the support in the House may have been there all along – it’s just that his measure has never been taken up before, since this was first time that the House voted on an independent bill on cryptocurrencies.

It’s only natural that the cryptocurrency industry would want softer treatment after nearly four years of a skeptical administration.

But Congress still doesn’t fully agree.

Reach joanna@dlnews.com.

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