31st July 2023 > > US legislation.

tl;dr

US legislation in favour of cryptos is picking up pace, perhaps stemming the flow of tax dollars into the EU.

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Is it still the weekend?

Curious Cryptos’ Commentary – FIT

The House Financial Services Committee voted in favour of the Financial Innovation and Technology for the 21st Century Act:

https://www.congress.gov/118/bills/hr4763/BILLS-118hr4763ih.pdf

Weighing in at a hefty 212 pages, I admit I have not read it in detail.

I am informed that its key purpose is to define rules for determining when a crypto firm must register with either the SEC or the CFTC with a clear pathway for doing so. The latter point is sorely missing despite the SEC Chair Gary Gensler’s claims to the contrary.

It also provides a process for certifying that coins are sufficiently decentralised to be classified as commodities and not securities.

That’s another one in the eye for Gensler.

Piling on more pressure there is a small section tucked away in the last few pages entitled “SEC. 504. MODERNIZATION OF THE SECURITIES AND EXCHANGE COMMISSION MISSION.”

Couldn’t happen to a nicer chap.

Curious Cryptos’ Commentary –Blockchain Regulatory Certainty Act

The same committee has also approved this act:

https://emmer.house.gov/_cache/files/2/0/20ef89fd-0ee7-49a6-b6b1-85917a6ce7f4/7DCDCE2ADC19C664E67493A2CD38ACDC.brca.pdf

Just four pages long (phew!) it starts thus:

“To provide a safe harbour from licensing and registration for certain non-controlling blockchain developers and providers of blockchain services.”

In short, crypto firms that do not custody assets will not have to register as “money transmitters”, the process for which rightly places onerous demands on those who wish to custody assets.

Sponsored by Congressman Tom Emmer, he gave a rallying call to arms once the bill had passed:

“The United States should prioritize accelerating the development of blockchain technology and create an environment that enables the American private sector to lead. These technologies hold untold promise for our economy and for all Americans, and we should be embracing them.”

Hear, hear Tom, you have our full support.

…

There’s always a naysayer or two around who spoils the party. Representative Maxine Waters commented:

“As I have said before, we don’t need to invent new regulatory structures simply because crypto companies refuse to follow rules of the road. Our securities laws have protected investors and retirees for 90 years while supporting capital formation and facilitating innovation.”

A politician who doesn’t want to invent new rules and regulations is a rare beast indeed.