Donald Trump has promised to transform the United States into a “cryptographic capital of the planet”, and he will need cryptocurrency legislation so that his administration does it.
But while bills for Stablecoin regulations and market structure legislation were expected during the first 100 days of its administration, little concrete progress was made by legislators to advance a complete framework of national policy – in particular with regard to cryptographic markets.
And if the news tuesday (May 6) Coming Out of the Joint Hearing Entitled “American innovation and the Future of Digital Assets: A BluePrint for the 21st Century,” Held by the House Financial Services (HFS) Subcommittee on Digital Assets, Fincy Technology, and Artificial Intelligence & House Commodity Markets, Digital Assets, and Rural Development, is any indication, it may take at least another 100 days for emotions on both sides of the aisle to cool.
Initially, a bipartite audience intended to discuss a discussion project on the structure of the digital asset market, which was introduced to the congress on Monday, May 5, the audience rather derailed the partisan lines.
Rather than attending Tuesday’s audience, many Democratic legislators, led by the member of the Chamber’s financial services, Maxine Waters, have left the joint audience to keep their own “democratic audience to discuss the corruption of Trump cryptography and conflicts of interest”.
“This decision comes after President French Hill (R-AK) refused to include provisions in the legislation blocking Trump’s ability to enrich more crypto,” said Waters.
The political conflict marks a net turn in what was formerly a relatively bipartite area of interest and risks transforming both the surveillance of the stablescoin and the clarity of the crypto market of a regulatory challenge in a political football thrown and coming.
Read: Are cryptographic markets going to the general public? What Treasury leaders should know
The clarity of the cryptography market remains in limbo
The consequences of the emerging legislative stand of crypto are not only political. The lack of regulatory clarity continues to create uncertainty for developers, investors and companies operating in the space of American digital assets.
If Tuesday’s hearing had disappeared as planned, the legislators on both sides would have had the opportunity to discuss the “draft discussion on the structure of the digital asset market”, a legislative proposal which delimits the roles of the Securities and Exchange Commission (SEC) and the Commodity Futures Futures Trading Commission (CFTC) to supervise cryptocurrencies and assets based on blocks.
The draft bill offers a complete legal framework to regulate digital products, including cryptographic tokens and stablescoins, while preserving key exemptions for decentralized financing developers (DEFI) and blockchain.
At the heart of the project is a clear distribution of responsibilities. The CFTC receives exclusive competence on the digital point markets of basic products through a new class of regulated entities – exchanges of digital products, brokers and dealers. These entities are said to be subject to rules on custody, capital, disclosure and governance, while customers could opt for services such as intention, provided that the conditions set by the CFTC are met.
The bill also presents the concept of qualified digital products guards, requiring strict monitoring and recording to protect customer assets, echoing investor protection standards against traditional finances.
In a concession to the cryptography industry, the bill removes digital products and certain stablescoins of the definition of the dry of “security”. However, he grants the anti-fraud powers of the SEC on transactions involving digital products within his recorded entities. It also allows double registration, allowing brokers and exchanges to register with the SEC and the CFTC in the context of a rationalized “notice registration” process.
Read: The three most important crypto policies to watch this year
The crypto continues its push in consumer finance
The United States, despite the end of the police, saw its regulators – including the SEC, the Federal Deposit Insurance Corporation (FDIC) and the Federal Reserve – begin to clarify their positions on the crypto.
At the beginning of March, during the very first “cryptographic summit” of the White House, Trump expressed his hope that the legislation on the stables would go to his office before the recreation of the congress from August 5.
“There is certainly a change in the way the administration considers the digital asset industry,” said Dan Boyle, partner of Bois Schiller Flexner, in Pymnts in an interview published on April 23. “It is not a conflictual posture … Obvious growth is in staboins and you have a lot of sewer.”
As the Pymnts previously covered, Stablecoin’s market capitalization reached a record level in April in the middle of solid performance between the cryptocurrency sectors. The regulatory maturation, the quest for the real world of the usefulness of stablescoin and the institutionalization of digital assets mark a turning point in which the days of the Far West crypto are replaced by convergence by traditional finance, reported on April 23.
