As the 2024 U.S. election approaches, digital assets have become a political issue for the first time as industry executives and advocates pressure candidates to pass pro-industry policies and embrace the future of money.
A clear and comprehensive digital asset policy in the United States remains elusive, as regulators such as the U.S. Securities and Exchange Commission (SEC) regulate through enforcement actions rather than rulemaking. This lack of a consistent framework is a growing concern among elected lawmakers, industry service providers, and single-issue cryptocurrency voters.
While it is important to understand a particular candidate’s position on cryptocurrency policy, voters should also understand the underlying legislation currently being considered in the House and Senate. Key bills currently under consideration include:
21st century financial innovation and technology law
The 21st Century Financial Innovation and Technology Act (FIT21), introduced by Pennsylvania Representative Glenn Thompson in 2023, establishes a comprehensive digital asset regulatory framework by bringing sufficiently diversified assets under the authority of the Commodity Futures Trading Commission (CFTC). We aim to do so. The bill has the following definition criteria for sufficient decentralization:
“Among other requirements, no one has unilateral power to control the blockchain or its use and the issuer or affiliate does not control more than 20% of the digital assets or have voting rights in the digital assets.”
But the bill also gives the SEC authority to regulate digital assets that are considered securities. The bill passed the House of Representatives in May 2024 and must pass the Senate before being sent to the president for consideration.
CBDC Surveillance Prevention Act
Minnesota Rep. Tom Emmer first introduced the CBDC Surveillance Prevention Act of 2023.
The goal of the bill is to prohibit the Federal Reserve from creating central bank digital currencies (CBDCs) targeted at consumers or maintaining accounts on behalf of individuals.
Moreover, the bill seeks to completely restrict the Federal Reserve from “using central bank digital currencies or issuing central bank digital currencies to implement monetary policy.”
CBDCs have faced widespread criticism from the cryptocurrency community, freedom-seeking individuals, privacy advocates and commercial banks. In May 2024, the bill passed the U.S. House of Representatives and awaits a vote in the Senate.
Clarity on the Payment Stablecoin Act of 2024
The Clarity for Payment Stablecoins Act is a reintroduction of Congressman Patrick McHenry’s 2023 bill of the same name and would establish a comprehensive regulatory framework for U.S. dollar stablecoins. We want to build.
The key difference between the latest draft and the previous bill is a provision that allows stablecoin issuers with a market capitalization of less than $10 billion to be regulated at the state level rather than the federal level.
A previous version of the bill was introduced in the House of Representatives but has not yet been passed by either party. Senators Lummis and Gillibrand have also proposed similar legislation in the Senate in April 2024 to establish a stablecoin regulatory framework.
Digital Asset Money Laundering Prevention Act
The Digital Asset Anti-Money Laundering Act, first introduced by Massachusetts Senator Elizabeth Warren in July 2023, proposes that digital asset providers be subject to the same reporting requirements as traditional financial institutions under the Bank Secrecy Act.
Warren is one of the cryptocurrency industry’s most vocal critics, and the 2023 bill is facing significant backlash as it is one of the most anti-crypto bills currently under consideration.
The bill has not yet passed both the House and Senate and lost the support of its co-sponsor, Republican Sen. Roger Marshall, in July 2024.
Financial Technology Protection Act of 2023
The Financial Technology Protection Act of 2023, proposed by Iowa Rep. Zachary Nunn, would create the Financial Technology Working Group to combat illicit financing from emerging financial technologies, terrorism and organized crime. We aim to do so.
In early 2024, the bill passed the U.S. House of Representatives and was sent to the Senate for consideration.
Equal opportunity law for all investors
The Equal Opportunity for All Investors Act, introduced by Nebraska Representative Mike Flood in April 2023, would expand the definition of “accredited investor” to lower barriers to entry for selling private securities and participating in public offerings.
More specifically, the bill allows individuals to qualify as accredited investors by passing a knowledge test administered by the SEC.
In 2020, the SEC revised its long-standing standards for accredited investors to emphasize financial knowledge rather than net worth, income or wealth. The Equal Opportunity for All Investors Act has passed the U.S. House of Representatives but has not yet passed the Senate.
Blockchain Regulatory Certainty Act
Representative Tom Emmer, one of the strongest proponents of cryptocurrencies, introduced the Blockchain Regulatory Certainty Act to the U.S. House of Representatives in March 2023. A key goal of the bill is to exempt blockchain developers and service providers from traditional financial reporting requirements. Do not handle customer funds.
The bipartisan bill could advance to the U.S. House of Representatives with approval from the House Financial Services Committee in July 2023, but has not yet passed both the House and Senate.
How to store coins
Ohio Representative Warren Davidson is calling for the Keep Your Coins Act of July 2023 as a consumer-facing protection measure meant to prevent regulators from preventing U.S. citizens from transacting using self-managed wallets. introduced.
At present, it is unclear whether the bill will be passed into law or whether it will receive widespread support.
magazine: Crypto voters are already disrupting the 2024 election and will continue to do so.