Cryptocurrency is having a moment in Washington D.C. The Senate voted last week to overturn an SEC rule, Staff Accounting Bulletin 121 (SAB-121), that had imposed onerous accounting standards on cryptocurrency assets held by financial institutions. The Senate vote followed House approval of the same pro-crypto measure.
This week, the House will consider Financial Innovation and Technology for the 21st Century Act (FIT21), a bill that would establish a long-awaited U.S. regulatory regime for the crypto industry. And as of Monday, the U.S. Securities and Exchange Commission (SEC) appears to be leaning towards approval of exchange-traded funds (ETFs) for the spot market for a type of cryptocurrency known as Ethereum. If approved, it would be the second type of crypto ETFs authorized by the SEC. The tide is shifting.
President Biden has said hell veto the Congressional action reversing SAB-121. We hope he listens to lawmakers in his own party, including Senate Majority Leader Chuck Schumer and Corey Booker of New Jersey, who were among those who voted 60-38 to repeal the SEC rule.
At the same time, spot ether ETF approval would be another giant step forward for the crypto industry on its inevitable road to broad-based mainstream adoption. In January, SEC-approved ETFs pegged to the spot market in Bitcoin began trading.
Crypto got a bad name with the spectacular implosion of Sam Bankman-Frieds fraudulent FTX empire, followed by the incarceration of Changpeng CZ Zhao, the former CEO of Binance, the largest global cryptocurrency exchange.
That stigma masked all the potential positive benefits of the blockchain technology that underpins cryptocurrency. More than 50 million Americans now hold cryptocurrencies. And the variety of exchange-traded funds pegged to Bitcoin that have sprung up this year have attracted $12 billion in inflows as of Mayone of the most successful ETF launches in history. No wonder Congress has taken notice.
The Congressional repeal effort was aimed at the SECs Staff Accounting Bulletin 121 (SAB-121), adopted in 2022. The rule required financial institutions that hold crypto accounts to treat them as liabilities, which made the safekeeping of digital assets simply uneconomical. A recent analysis by the bipartisan Congressional Research Service had observed that rules represents a shift from traditional custodial practices, could limit involvement of certain institutions, and may introduce new costs or risks.
At its heart, blockchain technology is here to stay, remains bipartisan, and its building momentum on a path to mainstream adoption as the country focuses on the November elections.
While agencies could have reduced ambiguity by working together to clearly and precisely define the boundaries of their respective jurisdictions, they have refused to do so. Instead, they have gone on campaigns of regulation by enforcement to assert their authority over the asset class and to suppress its adoption and growth.
This approach has been costly and expensive for those on the receiving end, although recent court rulings are giving the crypto industry some of the clarity it has been seeking. While this is not the preferred policy path, checks and balances are working, and this is unlocking pent-up demand for clearly regulated crypto products.
With the November U.S. elections looming, a sharply divided electorate has found common ground in their support of blockchain technology. For progressives, blockchain-powered finance eliminates gatekeepers. It makes finance more accessible and inclusive at a time when the crackdown on crypto alienates communities of color, who have embraced the asset class. Among conservatives, agency overreach violates fundamental principles of free markets and more limited government.
Regardless, leadership in innovation and technology remains a shared American value. In fact, 20% of voters in key battleground states identified crypto as a major issue in the 2024 election season according to a recent survey by Digital Currency Group. As seen by the success of pro-crypto candidates in recent primaries, candidates who choose to fight crypto do so at their own peril.
In a final act of desperation, anti-crypto crusaders have sought to garner bipartisan support by suggesting that crypto harms national security. But crypto is no bigger threat to national security than the internet itself. In fact, the transparency of blockchain has emerged as a key forensic tool to better track illicit finance.
The greater threat to national security could be the economic fallout of policies that thwart innovation and send entrepreneurs overseas. For example, it would be difficult to design a greater innovation for the U.S. dollar than stablecoins pegged one-to-one to the dollar. Stablecoins are already the 16th largest holder of Treasury bonds, represent 99% of internet money, and are set to preserve the dollar as the global reserve currency for decades to come.
The Senate and House votes to overturn SAB-121 are a milestone in bipartisan support for the cryptocurrency industry and show that Congress understands that blockchain technology is the future of the internet.
One reason the SEC has been able to attempt to apply antiquated thinking to the regulation of the new internet is that, so far, Congress has not passed nuanced legislation that defines regulatory parameters and encourages U.S. innovation. As a result, regulators have been left to rely upon decades-old dilapidating financial rules that do not reconcile with the realities of the new digital asset class.
Today, the House will consider the Financial Innovation and Technology for the 21st Century Act (FIT21), a bill that would establish a long-awaited U.S. regulatory regime for the crypto industry. The bill has the support of the cryptocurrency industry because it will deliver customer protections and long-sought-after regulatory clarity.
We hope that Congresss bipartisan support for the crypto industry will continue to prevail. And we hope the President takes heed of the public sentiment.
As House lawmakers prepare for a floor vote on FIT21, the electorate will be watching. History will be watching, too.
Chris Perkins is the president of CoinFund, an asset management firm that champions the leaders of the new internet.
The opinions expressed in Fortune.com commentary pieces are solely the views of their authors and do not necessarily reflect the opinions and beliefs ofFortune.
Go here to read the rest:
Bipartisan support of cryptocurrency is resurging in Congress. Here's why - Fortune
- Bitcoin Center NYC To Support Wednesday's CryptoCurrency Convention By Hosting After-Party [Last Updated On: April 11th, 2014] [Originally Added On: April 11th, 2014]
- As Bitcoin Soars in Value, Alternative Cryptocurrencies ... [Last Updated On: April 11th, 2014] [Originally Added On: April 11th, 2014]
- CryptoCurrency.org [Last Updated On: April 11th, 2014] [Originally Added On: April 11th, 2014]
- Cryptocurrency - Wikipedia, the free encyclopedia [Last Updated On: April 11th, 2014] [Originally Added On: April 11th, 2014]
- Qoinpro Cryptocurrency Faucet - Video [Last Updated On: April 11th, 2014] [Originally Added On: April 11th, 2014]
- Global Issues Cryptocurrency Project - Video [Last Updated On: April 11th, 2014] [Originally Added On: April 11th, 2014]
- cryptocurrency - Video [Last Updated On: April 11th, 2014] [Originally Added On: April 11th, 2014]
- PotCoin @ Cryptocurrency convention NYC, Good Audio - Video [Last Updated On: April 12th, 2014] [Originally Added On: April 12th, 2014]
- Bryce Weiner @ CryptoCurrency Convention 2014 - Video [Last Updated On: April 12th, 2014] [Originally Added On: April 12th, 2014]
- Unobtanium Cryptocurrency Explained - Video [Last Updated On: April 12th, 2014] [Originally Added On: April 12th, 2014]
- How To Create Your Own Cryptocurrency Co.Labs code ... [Last Updated On: April 14th, 2014] [Originally Added On: April 14th, 2014]
- CryptoCoinsNews - Cryptocurrency and Bitcoin News with ... [Last Updated On: April 14th, 2014] [Originally Added On: April 14th, 2014]
- Joe Rogan and Reddit Co-founder Alexis Ohanian talk Dogecoin, Cryptocurrency - Video [Last Updated On: April 14th, 2014] [Originally Added On: April 14th, 2014]
- How To Assess A CryptoCurrency: AltCoin Assessment Protocol. What's the next big AltCoin? - Video [Last Updated On: April 14th, 2014] [Originally Added On: April 14th, 2014]
- Reggie Middleton's UltraCoin @ NYC CryptoCurrency Convention - Video [Last Updated On: April 14th, 2014] [Originally Added On: April 14th, 2014]
- The future is Nxt (cryptocurrency platform) - Video [Last Updated On: April 19th, 2014] [Originally Added On: April 19th, 2014]
- CryptoCurrency Convention 4/9/14 - Dan Larimer Bitshares - Video [Last Updated On: April 20th, 2014] [Originally Added On: April 20th, 2014]
- CryptoCurrency Convention 4/9/14 - Xavier Hawk Permacredits - Video [Last Updated On: April 20th, 2014] [Originally Added On: April 20th, 2014]
- Does a cryptocurrency have the potential to revolutionize Ukraine? - Video [Last Updated On: April 20th, 2014] [Originally Added On: April 20th, 2014]
- Marscoin @ CryptoCurrency Convention NYC 4/9/14 - Lennart Lopin - Video [Last Updated On: April 22nd, 2014] [Originally Added On: April 22nd, 2014]
- Vertcoin @ CryptoCurrency Convention NYC 4/9/14 - Joe Fisher - Video [Last Updated On: April 22nd, 2014] [Originally Added On: April 22nd, 2014]
- UltraCoin @ CryptoCurrency Convention NYC 4/9/14 - Reggie Middleton - Video [Last Updated On: April 22nd, 2014] [Originally Added On: April 22nd, 2014]
- iCoin @ CryptoCurrency Convention NYC 4/9/14 - Ryan Ridgeway - Video [Last Updated On: April 22nd, 2014] [Originally Added On: April 22nd, 2014]
- Florincoin @ CryptoCurrency Convention NYC 4/9/14 - Joe Fiscella - Video [Last Updated On: April 22nd, 2014] [Originally Added On: April 22nd, 2014]
- PotCoin @ CryptoCurrency Convention NYC 4/9/14 - Nick Iversen - Video [Last Updated On: April 22nd, 2014] [Originally Added On: April 22nd, 2014]
- ZenithCoin @ CryptoCurrency Convention NYC 4/9/14 - Eddie Corral - Video [Last Updated On: April 22nd, 2014] [Originally Added On: April 22nd, 2014]
- Bryce Weiner @ CryptoCurrency Convention 4/9/14 - - Video [Last Updated On: April 24th, 2014] [Originally Added On: April 24th, 2014]
- Bitcoin Exchange CryptoRush Loses Millions of BlackCoin Cryptocurrency - Video [Last Updated On: April 24th, 2014] [Originally Added On: April 24th, 2014]
- Brock Pierce, Entrepreneur "FireSide Chat" @ CryptoCurrency Convention NYC - 4/9/14 - Video [Last Updated On: April 24th, 2014] [Originally Added On: April 24th, 2014]
- [OFFICIAL SPONSOR] Nick Spanos, Bitcoin Center NYC @ CryptoCurrency Convention 4/9/14 - Video [Last Updated On: April 24th, 2014] [Originally Added On: April 24th, 2014]
- AuroraCoin @ CryptoCurrency Convention NYC 4/9/14 - David Lio - Video [Last Updated On: April 24th, 2014] [Originally Added On: April 24th, 2014]
- DigiByte @ CryptoCurrency Convention NYC 4/9/14 - Jared Tate - Video [Last Updated On: April 24th, 2014] [Originally Added On: April 24th, 2014]
- Digitalcoin @ CryptoCurrency Convention NYC 4/9/14 - Andrew Davidson - Video [Last Updated On: April 24th, 2014] [Originally Added On: April 24th, 2014]
- BitAngels Co-Founder, David Johnson @ CryptoCurrency Convention NYC 4/9/14 - Video [Last Updated On: April 24th, 2014] [Originally Added On: April 24th, 2014]
- The Future of Cryptocurrency, Investing, and Crowdfunding (Toronto #BitcoinExpo Highlights) #548 - Video [Last Updated On: April 24th, 2014] [Originally Added On: April 24th, 2014]
- How to Set Up a Ripple (CryptoCurrency) Generating System! - Video [Last Updated On: April 24th, 2014] [Originally Added On: April 24th, 2014]
- --- The Great Debate --- Bitcoin vs Altcoin @ The CryptoCurrency Convention 4/9/14 - - Video [Last Updated On: April 24th, 2014] [Originally Added On: April 24th, 2014]
- Popularcoin @ CryptoCurrency Convention 4/9/14 - Joshua Nold - Video [Last Updated On: April 24th, 2014] [Originally Added On: April 24th, 2014]
- TimeKoin @ CryptoCurrency Convention 4/9/14 - Michael Brown - Video [Last Updated On: April 24th, 2014] [Originally Added On: April 24th, 2014]
- Infinitecoin @ CryptoCurrency Convention 4/9/14 - Loring Small - Video [Last Updated On: April 24th, 2014] [Originally Added On: April 24th, 2014]
- Bitcoin vs. Political Power: The Cryptocurrency Revolution - Stefan Molyneux at TNW Conference - Video [Last Updated On: April 26th, 2014] [Originally Added On: April 26th, 2014]
- TNW - Stefan Molyneux - Money, Power and Politics The Cryptocurrency Revolution - Video [Last Updated On: April 26th, 2014] [Originally Added On: April 26th, 2014]
- Coinnext Cryptocurrency Exchange Coming Soon - Video [Last Updated On: April 29th, 2014] [Originally Added On: April 29th, 2014]
- The Mises View: "Taxing Cryptocurrency" | Jeff Deist - Video [Last Updated On: May 2nd, 2014] [Originally Added On: May 2nd, 2014]
- mTrader.org - Cryptocurrency Mining System - Video [Last Updated On: May 2nd, 2014] [Originally Added On: May 2nd, 2014]
- CS 171 Final Project: Cryptocurrency Visualizations - Video [Last Updated On: May 3rd, 2014] [Originally Added On: May 3rd, 2014]
- Cryptocurrency Explained The Tech Guy 1046 - Video [Last Updated On: May 3rd, 2014] [Originally Added On: May 3rd, 2014]
- Know How 74 Cryptocurrency - Video [Last Updated On: May 4th, 2014] [Originally Added On: May 4th, 2014]
- CryptoCurrency of the World Unite! - Video [Last Updated On: May 9th, 2014] [Originally Added On: May 9th, 2014]
- BBT Presents: Ode to Cryptocurrency - Video [Last Updated On: May 13th, 2014] [Originally Added On: May 13th, 2014]
- Scryptify Cryptocurrency Video - Crypto Currency Exchanges - Video [Last Updated On: May 13th, 2014] [Originally Added On: May 13th, 2014]
- Bitpagar Cryptocurrency - Video [Last Updated On: May 16th, 2014] [Originally Added On: May 16th, 2014]
- How to Mine Cryptocurrency Safely - Video [Last Updated On: May 17th, 2014] [Originally Added On: May 17th, 2014]
- Bunnycoin - Innovative New Cryptocurrency - Video [Last Updated On: May 17th, 2014] [Originally Added On: May 17th, 2014]
- Nxt cryptocurrency platform: Proof of Stake mining system - Video [Last Updated On: May 18th, 2014] [Originally Added On: May 18th, 2014]
- Violincoin - The first cryptocurrency for musician - - Video [Last Updated On: May 21st, 2014] [Originally Added On: May 21st, 2014]
- The Cryptocurrency Store (Spanish/Espagnol) - Video [Last Updated On: May 22nd, 2014] [Originally Added On: May 22nd, 2014]
- Cryptocurrency: Get Mining! - Video [Last Updated On: May 22nd, 2014] [Originally Added On: May 22nd, 2014]
- How To Trade CryptoCurrency: Sign up to a safe and reliable exchange for trading CryptoCurrency - Video [Last Updated On: May 22nd, 2014] [Originally Added On: May 22nd, 2014]
- Cryptocurrency and Nonprofits with Eric Nakagawa - Video [Last Updated On: May 23rd, 2014] [Originally Added On: May 23rd, 2014]
- The Cryptocurrency Store - Video [Last Updated On: May 23rd, 2014] [Originally Added On: May 23rd, 2014]
- Bitcoin Song - The Cryptocurrency Store - Video [Last Updated On: May 25th, 2014] [Originally Added On: May 25th, 2014]
- Videoconferencia Cryptocurrency 201243946 - Video [Last Updated On: May 27th, 2014] [Originally Added On: May 27th, 2014]
- VideoCharla Jesus Ramos Cryptocurrency - Video [Last Updated On: May 27th, 2014] [Originally Added On: May 27th, 2014]
- Sudbury Cryptocurrency Conference, May 26th: Ethereum - Video [Last Updated On: May 30th, 2014] [Originally Added On: May 30th, 2014]
- 2014 Cubieboard 1, 2 - Mining Peercoins (SHA-256 based) Cryptocurrency - Video [Last Updated On: June 2nd, 2014] [Originally Added On: June 2nd, 2014]
- 2nd Salaries in CryptoCurrency - Video [Last Updated On: June 2nd, 2014] [Originally Added On: June 2nd, 2014]
- The Best Cryptocurrency Trading Platform - Video [Last Updated On: June 3rd, 2014] [Originally Added On: June 3rd, 2014]
- Cryptocurrency business forum - Video [Last Updated On: June 4th, 2014] [Originally Added On: June 4th, 2014]
- Cryptocurrency Opportunities in Southeast Asia | John KIM - Video [Last Updated On: June 7th, 2014] [Originally Added On: June 7th, 2014]
- Facebook Approves Cryptocurrency Tipping Apps -- Bitcoin Weekend In San Francisco - Video [Last Updated On: June 8th, 2014] [Originally Added On: June 8th, 2014]
- Wolf of Wall Street & Cryptocurrency w/ Patrick "PK" McDonnell - Video [Last Updated On: June 9th, 2014] [Originally Added On: June 9th, 2014]
- BankNote CryptoCurrency Review - Video [Last Updated On: June 13th, 2014] [Originally Added On: June 13th, 2014]
- CryptoCurrency 4 Housing for Father's Day! - Video [Last Updated On: June 13th, 2014] [Originally Added On: June 13th, 2014]
- Hyper CryptoCurrency Review - Video [Last Updated On: June 14th, 2014] [Originally Added On: June 14th, 2014]
- 0NE " EPIC " (HD dubstep mix) spot - a cryptocurrency with an Engine - Video [Last Updated On: June 15th, 2014] [Originally Added On: June 15th, 2014]
- Bitcoin,Litecoin mining rig cryptocurrency 2500W system, 6x 280x ASUS Beast 2014 - Video [Last Updated On: June 17th, 2014] [Originally Added On: June 17th, 2014]
- The Rundown Live #281 Tatiana Moroz (Chemtrails,CryptoCurrency,Anti-War) - Video [Last Updated On: June 19th, 2014] [Originally Added On: June 19th, 2014]
- Neutrality Coin New Alternative Cryptocurrency - Video [Last Updated On: June 20th, 2014] [Originally Added On: June 20th, 2014]
- Cryptocurrency Update - Buy Low, Sell High! - Video [Last Updated On: June 21st, 2014] [Originally Added On: June 21st, 2014]