Congress Introduces A Game-Changing Crypto Bill Amid $350 Billion Bitcoin, Ethereum, BNB And XRP Price Pump
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The bitcoin price dropped back last month from its 2023 peak of just over $30,000, dragging on the ethereum price as well as XRP and BNB, even as Goldman Sachs and Microsoft quietly lay the groundwork for the next bull run.
Now, amid fears a crypto “powder keg” could be about to ignite, U.S. lawmakers have proposed a “functional framework” aimed at providing regulatory clarity for bitcoin and crypto companies in the country.
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U.S. lawmakers have introduced a bill to Congress that proposes a clearer delineation of authority … [+]
The 162-page draft bill, unveiled by House financial services committee chair Patrick McHenry, a Republican from North Carolina, and House agriculture committee chair Glenn Thompson, a Republican from Pennsylvania, is an attempt to kickstart discussions between Republicans and Democrats on the two committees, Bloomberg reported.
In recent weeks, some of the largest U.S. bitcoin and crypto companies have warned the country is falling behind the rest of the world on crypto legislation, with Hong Kong’s new regulatory regime coming into force this week alongside the Europe Union’s landmark markets in crypto assets (MiCA) regulation being signed into law.
Major crypto exchanges, including the Nasdaq-listed Coinbase, have been feuding with regulators over whether certain cryptocurrencies are being sold and traded as unregistered securities. In late 2020, the U.S. Securities and Exchange Commission (SEC) sued Ripple, accusing the company of selling $1.3 billion in unregistered securities via its XRP cryptocurrency (Ripple’s chief executive has recently said he’s “confident” of an imminent outcome).
The new U.S. crypto bill—after several attempts to pass crypto legislation in previous sessions—proposes cryptocurrencies offered as part of an investment contract would fall under SEC oversight, while those that qualify as commodities would be overseen by the Commodity Futures Trading Commission (CFTC).
Whether cryptocurrencies such as bitcoin, ethereum, Binance’s BNB or Ripple’s XRP are defined as securities or commodities would depend on how decentralized their underlying blockchain is, decided by an SEC ruling.
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The bitcoin price has roared back in 2023 following last year’s sudden crash that wiped $2 trillion … [+]
The bill was cheered by some in the bitcoin and crypto industry ahead of a House agriculture committee hearing on digital asset regulation scheduled for June 6.
The bill “lays a strong foundation for regulatory jurisdiction and definitions,” Paul Grewal, the chief legal officer at bitcoin and crypto exchange Coinbase, posted to Twitter. “A comprehensive bill of this magnitude warrants an in-depth review, which we’ll be conducting over the coming days, but what we’re seeing so far is encouraging.”
“It’s a win this year for crypto to even get some attention in DC right now, after last year’s setbacks,” Ryan Selkis, founder at crypto data company Messari, posted to Twitter, adding: “There is still a lot of work to do to get to a viable piece of legislation, but this is a good starting point for a sensible market structure bill.”
