Crypto regulation is guaranteed to be coming soon. At this point, there’s far too much interest in the asset class from Americans for the government to resist injecting its influence. There is crime to stop, there are tax dollars to reap and there are Americans to keep safe. At least, that’s what the sentiment seems to be on Capitol Hill, where lawmakers are meeting today to continue their ongoing discussion of crypto law.
Investors have been talking an awful lot about what regulations will look like for Americans. As President Joe Biden prepares an executive order on crypto, Congress is meeting to discuss broader legislature. Meanwhile, there’s been a lot of talk aimed abroad; as Russia and India continue to shape their crypto economic policies, we could be seeing a taste of what American legislature might look like.
More recently, investors have been discussing the U.S. Securities and Exchange Commission’s (SEC’s) ongoing efforts to put the reins on crypto. The agency put forth a proposal last week, which SEC commissioner Hester Peirce called a “Trojan Horse” for crypto regulation. If passed, it could be the commission’s permission to dictate what it deems to be an exchange platform and to probe into these exchanges for misdoings.
Congress Meets for the Second Time on Cryptocurrency, Setting the Tone for Future Crypto Regulation
Today, another piece of the crypto regulation puzzle joins the fold through Congressional crypto meetings. After meeting once in December, this meeting is be the second Congressional get-together to discuss cryptocurrency.
This meeting is seeing lawmakers talk about stablecoins in particular. Congress’ meeting is seeing a review of the President’s Working Group’s report on stablecoins alongside one of the report’s authors. Congresspeople are taking this information and debating whether a stablecoin venture is worthwhile for the government and when implementation would take place.
Additionally, the meeting is seeing lawmakers take bold stances on the future of stablecoins in the U.S. North Carolina Representative Patrick McHenry asked the committee of lawmakers to consider implementing stablecoins on a state-by-state basis. By deferring from a federal law, states would be able to create their own laws around their own stablecoins. McHenry’s suggestion saw pushback from U.S. Treasury Department undersecretary Jean Nellie Liang. Liang says that state regulators interviewed by the President’s Working Group largely suggested federal oversight in the first place.
The meeting is far and away from pointing investors toward specifics around regulation. However, it certainly suggests the gears are turning in the U.S. Capitol; these debates are only heating up as policymakers gain more exposure to the space, and laws are slowly becoming more of a reality.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.