The next two weeks are critical for the crypto industry as the US Congress considers several key legislative proposals that could shape the regulatory landscape for digital assets.
Repeal of SAB 121
The Senate is expected to vote this week on repealing Staff Accounting Bulletin No. 121 (SAB 121), which requires financial institutions to list digital assets they hold for clients on their balance sheets. Critics argue that this inflates banks’ assets and liabilities, hindering the growth of crypto custody services. The House of Representatives already voted to repeal SAB 121, but President Biden has indicated he will veto it.
Department of Commerce as Blockchain Advisor
A bipartisan bill introduced by Representatives Bucshon and Rochester would designate the Department of Commerce as the primary advisor to the President on blockchain issues. It also proposes an advisory group within the department to promote blockchain integration in government.
Comprehensive Crypto Regulatory Framework
The FIT 21 bill, sponsored by House Financial Services Committee Chair McHenry, aims to establish a comprehensive regulatory framework for cryptocurrencies. This bill represents the first major attempt to address crypto regulation at the federal level.
Political and Regulatory Context
These legislative efforts come amidst increased regulatory scrutiny by the SEC and concerns raised by the Biden administration about crypto risks. However, many in Congress and the industry argue that the current approach stifles innovation and lacks clear guidelines.
Election Year Dynamics
Crypto policy has emerged as a significant campaign issue, with former President Trump endorsing crypto and its bipartisan potential. This could influence voter demographics, particularly among younger voters interested in digital asset technologies.
