They aimed to eliminate the regulatory uncertainty in the cryptocurrency markets or at least take the first step towards it. The announcement made at the end of May suggested that the law would be known within 2 months. However, it didn’t happen, and although July 12th was mentioned for the regulation, it was not put to a vote. So when will the US Congress vote on cryptocurrency regulation?
US Cryptocurrency Regulation
The Financial Services Committee of the House of Representatives has postponed the planned vote for legislation that will create a comprehensive regulatory framework for stablecoins and cryptocurrency trading in the US. According to a timing note sent to the committee’s offices, the committee discussion and vote have now been scheduled for July 26th. Politico was the first to report the news.
Many important figures drew attention to the regulatory gap in the crypto space following the collapse of FTX. However, despite nearly 9 months passing, a comprehensive law specific to crypto has not been enacted. Moreover, the success of the recent efforts should not be taken for granted.
Cryptocurrency Law
During a session on cryptocurrency asset legislation held in the committee last month, some Democratic lawmakers signaled skepticism towards the Republican-led effort by inviting an industry witness who argued that existing securities laws are sufficient to govern cryptocurrencies in the US. If Republicans unite, they can pass party-line bills in the House of Representatives, but they need the support of Senate Democrats and the acceptance of the Biden administration for these bills to become law.
While Biden and a significant portion of Democrats display an anti-crypto stance, it will be difficult for regulations to pass through the second and third stages. The House Agriculture Committee also has jurisdiction over the market bill and is expected to hold its own discussion and vote on this bill. The market structure legislation will give the Commodity Futures Trading Commission more direct power over markets for digital assets recognized as commodities by regulators, while directing regulators at the Securities and Exchange Commission and CFTC to prepare a roadmap for how a digital asset can transition from being treated as a security investment requiring significant financial disclosures to being treated as a commodity requiring less disclosure for the token or project name.
Representative French Hill said both bills would be passed by the end of the month.
