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US Passes Cryptocurrency Bill as Centralized Cryptocurrencies Overtake 2023 Blockchain M&A Activity
The US House of Representatives passed a historic bill to regulate cryptocurrency in the country on Wednesday (May 22), as centralized cryptocurrencies overtook blockchain M&A activity in 2023.
The Financial Innovation and Technology for the 21st Century Act (FIT21) passed by a vote of 279 to 136 and will now be submitted to the U.S. Senate for approval.
The bill aims to support the US cryptocurrency industry by providing legal clarity and protection for cryptocurrency users.
According to Republican Congressman Patrick McHenry, the bill will end the “food fight for control” of cryptocurrencies between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission.
SEC Chairman Gary Gensler criticized the bill for creating regulatory gaps.
“[FIT21] It would create new regulatory gaps and undermine decades of precedent regarding the oversight of investment contracts, exposing investors and capital markets to immeasurable risk,” Gensler said.
In his 2024 thematic intelligence report in blockchain Technology, research and analytics firm GlobalData recorded that blockchain was seeing an increase in the number of tech-related M&A deals.
By 2023, approximately 3.7% of all tech M&A deals were tied to blockchain technology, compared to just 2.2% in 2020.
Source: GlobalData
GlobalData reported that the main targets of these deals were blockchain development platforms, mining infrastructure and node players, as well as cryptocurrency exchanges and trading platforms.
Large centralized cryptocurrency exchanges such as Coinbase and Kraken have led this M&A activity.
Between 2014 and 2023, most of these deals took place in the United States. Approximately 35% of all blockchain M&A deals were conducted by US companies.
“In the Data: US Passes Cryptocurrency Bill as Centralized Cryptocurrencies Overtake Blockchain M&A Activity in 2023” was originally created and published by Verdicta trademark owned by GlobalData.
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