Cryptocurrency will become a hot topic as the US Congress resumes and battle lines are drawn between lawmakers for and against the fledgling financial sector..
But The Blockchain Association reports that more than 100 cryptocurrency advocates are fighting to help find the right balance between protection and innovation..
The 118th US Congress convened in Washington on January 3 and is scheduled to continue until January 3, 2025.during the last two years of President Joe Biden’s first term.
The cryptocurrency industry is currently in the spotlight following several bankruptcies over the past year.the biggest of which was the FTX accident at the beginning of November.
On January 3 in a Twitter thread. Ron Hammond, director of government relations for the Blockchain Association, highlighted the challenges and opportunities for Congress on the day it resumed..
1) This week in Congress and secretly. The first day of the 118th Congress has arrived. It’s no secret that the crypto industry is in the crosshairs of Congress following the fall of FTX. This Congress presents challenges and opportunities, though here’s the latest from the ground…
— Ron Hammond (@RonwHammond) January 3, 2023
1) This Week in Congress and Cryptocurrencies. The first day of the 118th Congress has arrived. It’s no secret that the cryptocurrency industry is in the crosshairs of Congress following the collapse of FTX. This Congress presents both challenges and opportunities, so here are the latest…
FTX founder Sam Bankman-Fried has gone from political donations to public enemy No. 1 on Capitol Hill.. Hammond added:
“The problem with many in DC is that they equate FTX with the entire crypto industry.”
The collapse could trigger “once-in-a-decade legislation,” and there are already proposals for a strong regulatory framework like the Lummis-Gilibrand bill.. The bipartisan bill addresses agency jurisdiction, stablecoin regulation, banking, crypto taxation, and interagency coordination.
Hammond said The first months of Congress will focus on the FTX collapse, although stable metals regulation will also be a priority..
“Smaller bills like stablecoin regulation and the spot market have a chance to move forward this year, but will likely have to wait until the dust settles on FTX both in court and in congressional hearings.”
The battle lines will be divided between pro-crypto House Financial Services Chairman Patrick McHenry and anti-crypto Senate Banking Chairman Sherrod Brown.and that last month he took the extreme step of proposing to ban cryptocurrencies.
There are also proposals to regulate cryptocurrencies from the House Committee on Agriculture, which advocates for oversight of Commodity Futures Trading Commission (CFTC) regulations..
Hammond also said Congress is likely to tackle new topics this year, such as non-fungible tokens (NFTs), decentralized autonomous organizations (DAOs) and decentralized finance (DeFi), which have seen a surge in interest due to last year’s enforcement action..
On the positive side, he concluded that Cryptocurrencies have a “strong bank in DC and continue to steal talent from other fields in advocacy, lobbying and politics.”.
The group, which previously consisted of less than a dozen people from CoinCenter, Coinbase, the Blockchain Association and several other groups, “has now grown into a network of more than 100 policy experts,” which is cause for optimism.he added.
On January 4th, Ripple CEO Brad Garlinghouse also said that he is “cautiously optimistic” about 2023.. He added that no bill is perfect, and going after it shouldn’t stop Congress from making progress on the regulatory framework.
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