With bitcoin soaring in value and Wall Street circling like a hawk, the US crypto industry is holding its breath as a crucial vote in Washington approaches next week. The Financial technology and Innovation Act for the 21st Century, or Fit21, could reshape the regulatory landscape for digital assets, potentially welcoming the industry or slowing its recent growth streak.
Fit21: a lifesaver or a strap?
Fit21 proposes a major change in the way the US government handles digital currencies. Currently, the regulatory landscape is fragmented, with the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) having a say.
Fit21 would establish the CFTC as the main cryptocurrency regulator, giving the industry a clearer picture of the rules it must follow. The bill would also establish barriers to protect consumers from risky behavior and establish protocols for how these assets are held and treated in bankruptcy proceedings.
The bitcoin industry has supported Fit21, calling it “crucial” to thecrypto-vote-that-could-blow-up-the-price-of-bitcoin–ethereum-and-xrp/?sh=504e1b1c129f” target=”_blank” rel=”noopener nofollow”> future of the US digital asset market The lack of clear regulations has been a major stumbling block for the industry, with some companies even threatening to leave the United States entirely.
The crypto Council for Innovation is concerned that the United States is falling behind other countries in adopting bitcoin innovation. In an open letter to lawmakers, he argued:
“By passing this legislation, we can accelerate the growth of blockchain technology and digital assets, fostering financial inclusion and protecting national security.”
Wall Street enters the crypto fray
The recent entry of Wall Street giants into the crypto space adds another layer of intrigue to the upcoming vote. The approval of a wave of bitcoin exchange-traded funds (ETFs) in January has opened the door for Wall Street to get a piece of the cryptocurrency pie.
These ETFs allow traditional investors to invest in bitcoin without having to directly purchase and hold the cryptocurrency. The potential for high fees associated with the custody of these ETFs has some industry observers concerned that Wall Street's involvement could stifle innovation.
Will bitcoin find a home in the US?
With the bitcoin” target=”_blank” rel=”noopener nofollow”>bitcoin price With rising and growing pressure from both the digital asset industry and Wall Street, the upcoming vote on Fit21 is a watershed moment for cryptocurrencies in the US. If passed, the bill could usher in a new era of regulatory clarity and foster industry growth.
However, if the bill is rejected, the future of cryptocurrencies in the US remains uncertain, which could lead to an exodus of cryptocurrency companies and hinder innovation. With 10 days to go before the vote, all eyes are on Washington as lawmakers decide whether to welcome cryptocurrencies with open arms or keep them at bay.
Featured image from Getty Images, chart from TradingView
