‘Virtual’ money in the US promises to explode

“Virtual” money (cryptocurrency, digital currency) businesses have spent about 130 million USD to support candidates with a pro-cryptocurrency stance running for congress, as well as billionaires in This industry is willing to spend heavily to bring Donald Trump back to the White House in the recent election. Now, businesses and cryptocurrency investors are expecting changes in policies and legal mechanisms to leverage the industry to develop.

Need comprehensive law for “virtual” money

December 26, sheet The Hill quoted Mr. Kristin Smith, General Director of the Blockchain Association – a non-profit organization in the US promoting innovative policies for digital assets, commenting on a congress and president supporting cryptocurrencies. Next year, the pieces are in place for Washington to make smart policies, including legislation on market structure and ensuring a stable currency.

There have been a number of comprehensive cryptocurrency bills discussed in the US Congress in recent years. In particular, businesses especially hope that Congress can pass the Financial and Technology Innovation for the 21st Century Act (FIT21). This bill provides protection mechanisms for the cryptocurrency industry, as well as outlines the boundaries of authority that the US Securities and Exchange Commission (SEC) and the US Commodity Futures Trading Commission (CFTC) have. can intervene. In May, FIT21 became the first important “virtual” money bill passed by the US House of Representatives, but was not put to a vote by the Senate.

In addition, cryptocurrency leaders also actively campaigned so that Donald Trump could issue a beneficial executive order in the first 100 days of his term. Mr. Trump’s recent moves to select personnel have brought optimism in the industry. One of them is the selection of former SEC commissioner Paul Atkins to become the new leader of this agency. “Mr. Atkins is aware that digital assets and other initiatives play an important role in making America greater than ever,” Mr. Trump said. On December 22, the US President-elect also announced the establishment of a “cryptocurrency council”, according to one of the priorities mentioned by Mr. Kristin Smith in a letter to Mr. Trump and congressmen.

Changing the SEC apparatus

One of the obstacles to the cryptocurrency industry in the US in recent years has come from SEC Chairman Gary Gensler, who has a tough stance and wants to apply digital asset control mechanisms. In 2025, cryptocurrency businesses hope to push Washington officials to rescind the SEC’s guidance, issued in 2022. Accordingly, the SEC regulates financial companies if they accept cryptocurrency protection. of the customer must declare it as a liability on the balance sheet and disclose certain information.

The cryptocurrency industry has vehemently opposed the above regulation, considering it an action that prevents financial institutions from accessing customers’ cryptocurrencies and affects lenders, while making it difficult for individuals who want to Send money to large companies to ensure safety. Congress passed a resolution requesting to rescind the SEC’s guidance in May, but it was vetoed by President Joe Biden. Things are expected to change for the better in the cryptocurrency world when Mr. Gensler will step down in January 2025 and be succeeded by Mr. Atkins. “The war against cryptocurrency in the US led by the SEC under Mr. Gensler has ended, thereby hopefully creating a healthy relationship between the industry and financial regulators,” according to the Chief Legal Officer. Stuart Alderoty from Ripple, the leading cryptocurrency enterprise in the US.