Cryptocurrency Rules With Sights Set For 118th Congress

The crypto space has a lot of buzz, and the latest developments in Washington could have an impact on how the sector grows. Although the crypto industry has been growing at a brisk pace, it’s still only just scratching the surface of what’s possible. Regulatory gaps and confusion between federal agencies have left the industry in a state of uncertainty. But, the sands are shifting with the advent of the 118th Congress. As a result, there’s a chance that the long awaited crypto regulatory measures could be implemented before the next congressional gridlock.

While the FTX meltdown has given Washington plenty to think about, the upcoming FinCEN bill and other bipartisan legislative initiatives have fueled speculation that the 118th Congress will be the crypto Congress. However, a lack of congressional action will likely damage the industry’s bottom line in the near term.

Aside from the infamous FTX tidbit, no single event has changed the way the industry operates, but a handful of major events have made it clear that more regulation is necessary than previously thought. Several regulatory proposals have been introduced, and several relevant committees have been calling witnesses to testify. Even the White House has chimed in on the topic, highlighting the importance of regulation in the sector and urging regulators to double down on enforcement. There’s also the odd case of the FTX apocalypse, which has given rise to new questions about the industry’s true value.

One of the most notable trends is the sheer amount of competition among digital currency and fintech startups. Many of them have been established in areas with favourable regulatory environments. Some have even been endorsed by the likes of Treasury Secretary Jacob Lew and the Federal Reserve. But, the biggest obstacle to their success is federal regulators’ reluctance to regulate the space. The SEC has a vision for implementing cryptocurrency regulations, and the FSB has weighed in, recommending a series of prudent measures. And while there are still a few open-ended questions, the senate banking committee has taken first steps to address the issue.

Another fad has been the “torch” which is a token intended to provide financial security to everyday consumers. It is a technology based monetary tool that is similar to a credit card, but instead of being withdrawn directly from a bank account, it is used to transfer money to other parties. Among the industry’s most popular tokens are cryptocurrencies, which have been estimated to be worth about $3 trillion. These tokens can be exchanged with other companies or individuals, depending on how the parties prefer to do business. Those interested in acquiring these assets should make sure to read up on the regulations surrounding them, or risk the ire of a slew of unscrupulous players.

Aside from the tidbits, there’s been a flurry of media coverage of a number of high profile events. Of course, no one wants to be named the FTX shill, so the big question remains: will Washington get its crypto act together?