Regulation
The bipartisan push for cryptocurrency regulation signals a collaboration between the White House and Congress
Ahead of the November elections, cryptocurrencies have become a major topic in the race for the White House. In particular, the Biden administration has changed its approach to regulating digital assets, likely influenced by former President Donald Trump’s support for the nascent sector.
The Biden Administration Calls for Balanced Crypto Regulation
In an executive publicationthe Biden administration opposed the passage of HR 4763, a bill that would impact the regulatory structure for digital assets in the United States.
The administration instead aims to work with Congress to establish a “comprehensive and balanced” agreement regulatory framework which promotes responsible development and innovation in the cryptocurrency and payments sectors.
The administration also cited a lack of sufficient protections for consumers and investors in H.R. 4763 and emphasized the need for adequate protections while promoting 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. This decision follows the House’s approval of the same pro-crypto measure.
Additionally, the House will consider the Financial Innovation and Technology for the 21st Century Act (FIT21), a bill aimed at establishing a regulatory regime for the cryptocurrency industry in the United States.
The potential approval of spot exchange-traded funds (ETFs) for Ethereum by the US Securities and Exchange Commission (SEC) further indicate a shift in the trend in favor of cryptocurrencies.
According to a Fortune magazine relationship, President Biden intends to veto congressional action to rescind SAB-121. However, lawmakers from 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, ensuring their safekeeping digital resources economically impracticable. A recent bipartisan analysis by the Congressional Research Service highlighted the potential limitations and costs associated with this rule, signaling the need for regulatory adjustments.
Trump campaign champions financial freedom
While blockchain technology remains a bipartisan focus, the Trump campaign made a noteworthy move announcing its acceptance of donations in Bitcoin and various cryptocurrencies.
This marks a significant milestone as the first major party presidential candidate to embrace cryptocurrency for fundraising purposes. The campaign integrates digital assets such as Bitcoin, Ethereum, Ripple, Dogemonetaand Shiba Inu, allowing donations through Coinbase Commerce.
The Trump campaign’s foray into cryptocurrency fundraising expands its digital fundraising operation and serves as a political statement supporting the role of Bitcoin and cryptocurrencies in enhancing financial freedom and innovation.
As the race for the White House intensifies, the Biden administration’s changing stance on regulation and the Trump campaign’s embrace of digital asset donations highlight the evolving landscape of digital assets in policy and regulation.
The upcoming elections are likely to further shape the trajectory of blockchain technology and its impact on the financial sector.
Featured image from Shutterstock, chart from TradingView.com