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U.S. Congress Begins to Discuss Cryptocurrency Regulations

  • The announcement of the hearing, set to be held by a special bipartisan committee, comes hours after President Joe Biden enacted the 1.2 billion Infrastructure Plan.
  • Based on the recommendations that arose from the committee’s discussions with industry experts, a legal framework will be created to regulate cryptocurrencies.
  • Four personalities from the crypto industry have been invited to this first session in Washington.

The Joint Economic Committee of the United States Congress will meet in the afternoon of Wednesday 17th to discuss the regulation of Bitcoin and other cryptocurrencies, solutions for which the crypto industry and many sectors across the country have long been calling for.

The hearing will be attended by Democratic and Republican legislators from the Senate and the House of Representatives and by various industry experts. The session will be chaired by the Democratic representative and chairman of the bipartisan committee, Donald Beyer, who had introduced the bill to regulate digital assets in July.

The objective of this legislative session is to determine the role of the federal government in the regulation of cryptocurrencies. The hearing was announced the in the wake of President Joe Biden enacting his 1.2 billion Infrastructure Plan.

Discussion of this matter have not been formally approached by legislators until this time, though the topic was briefly touched upon, in passing, by the Senate at the beginning of August regarding the inclusion of taxes on Bitcoin in the Biden Plan.

On the Flipside

  • With the creation of the bipartisan committee, it is presumed that the regulation of cryptocurrencies will be fact by next year.
  • The constant pressure on legislators, as well as the need for the government to expand its tax base, have sped up the process of regulating the crypto industry.
  • The market is swiftly growing and has already exceeded $ 3 trillion in total value.

The creation of a legal framework to regulate the mining, trading and circulation of digital assets has been requested by the U.S. Securities and Exchange Commission (SEC), and by U.S. exchange platform Coinbase.

SEC Chairman Gary Gensler believes the regulatory body has sufficient authority to enforce any regulations passed by Congress. On the other hand, Coinbase believes that it would be better to create an entirely new regulatory agency that is dedicated exclusively to the industry.

Discussions on the regulation of cryptocurrencies, had previously been a topic of constant discussion in the media and on social networks, but not within legislative spheres. Government agencies have been highly active in the last three months, lobbying Congress to legislate around cryptocurrencies, including stablecoins.

Sectors of the crypto industry believe that, if the legislative branch does not act soon, it will fall behind Europe, Australia and even many Latin American countries in such regulatory matters.

The legislative hearing will be broadcast live from the Cannon House building on the Joint Economic Committee of the U.S. Congress’s YouTube channel at 14:30 PST, titled “Demystifying Crypto: Digital Assets and the Role of Government.”

Lawmakers have invited four industry experts to speak about cryptocurrencies and blockchain to this audience. The speakers are Timothy Massad, a Harvard University researcher and former chairman of the Commodity Futures Trading Commission, and Alexis Goldstein, director of financial policy for the Open Markets Institute.

Also present will be Peter Van Valkenburgh, director of research at the Coin Center organization, and Kevin Werbach, director of the blockchain and digital assets project at the University of Pennsylvania. Both have joined notable senators in voicing the need to regulate cryptocurrencies and thereby harness their potential.

Why You Should Care

  • These are the formal beginnings of cryptocurrency’s regulatory process in the United States. 
  • Based on the discussions and recommendations presented by the Joint Economic Committee, Congress will approve a regulatory framework for the entire industry.

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    This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed to be financial legal or tax advice. Trading Forex, cryptocurrencies, and CFDs poses a considerable risk of loss

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