The cryptography industry was one of the largest expenditure in the 2024 electoral cycle – and now he has quite the month on Capitol Hill.
Last week, the Senate adopted a bipartite bill called The Genius Act, which could lead to something called Stablecoins used by Bank of America and Amazon.
Today, two Republican senators have unveiled a proposal that would change the way in which most cryptocurrencies are regulated – and more importantly, by whom: the Securities and Exchange Commission or the Commodity Futures Trading Commission.
So why is it counting for people who have never invested in Bitcoin or who froze their eyes whenever the blockchain is mentioned?
It is a matter of economic stability.
“When things work well, regulated, the whole economy is doing well,” said Chris Brummer, a professor at Georgetown Law. “But when things do not work as well and you have access to financial instability, your life can also be more difficult.”
The total market capitalization of cryptography now exceeds 3 dollars of dollars worldwide, and there is still a major debate on which should regulate it.
Under the Biden administration, the SEC took the lead regulating certain aspects of the crypto, mainly by pursuing crypto companies. However, a different approach may be necessary.
“The crypto is trying to interpret a lot of different opinions between federal agencies, through the judicial system and tries to find the regulatory path,” said Summer Mersinger, chief of the Blockchain Association, an Crypto lobbying group.
The industry wants most of the cryptocurrencies regulated by the CFTC and not the dry. It is complicated, but they are mainly arguing due to the decentralized nature of cryptography, it looks more economically like a barrel of oil or a bushel of wheat than on the apple broth.
But Corey Frayer de la Consumer Federation of America said there was a ulterior motive.
“The CFTC is simply not equipped by expertise, by the staffing, by budgeting to manage a huge securities industry,” he said.
Currently, around 700 people work for the CFTC. The dry has about 5,000.
There are two proposals – one in the House, one in the Senate. They should be reconciled and passed by both rooms before landing on the office of President Trump.
The final result – and which agency ends in charge – could shape not only the future of the crypto, but the way in which financial innovation is supervised in the United States for the years to come.
