As BTC soars in value and Wall Street circles it like a hawk, the U.S. crypto asset industry is holding its breath ahead of a crucial vote in Washington next week.
The vote on the 21st Century Financial Innovation and Technology Act (Fit21) could reshape the regulatory landscape for digital assets, with the result either welcoming the industry or putting the brakes on its recent growth spurt.
Fit21 is proposing a major shift in the way the U.S. government handles digital currencies. Currently, the regulatory landscape is fragmented, with the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) both having a say.
The Fit21 bill would establish the CFTC as the primary regulator for Crypto assets, giving the industry greater clarity on the rules it needs to follow.
The bill would also establish guardrails to protect consumers from risky behavior and set out protocols for how those assets should be held and handled in bankruptcy proceedings.
The BTC industry expressed support for Fit21, calling it “critical” to the future of the U.S. digital asset market. The lack of clear regulations has been a major sticking point for the industry, with some companies even threatening to abandon the U.S. altogether.
The Crypto Asset Innovation Council is concerned that the United States will fall behind other countries in embracing Bitcoin innovation.
In an open letter to lawmakers, the crypto asset industry said: “Through this legislation, we can accelerate the development of blockchain technology and digital assets, promote financial inclusion, and protect national security.”
Recently, Wall Street giants have entered the field of Crypto assets, adding another layer of mystery to the upcoming vote.
In January, a wave of spot BTC ETFs were approved, opening the door for Wall Street to get a piece of the Crypto asset pie. These ETFs allow traditional investors to invest in BTC without having to directly purchase and hold Crypto assets themselves.
But hosting these ETFs can incur huge fees, leading some industry observers to worry that Wall Street involvement could stifle innovation.
With the price of BTC continuing to climb and pressure from the digital asset industry and Wall Street, the upcoming Fit21 bill vote is a watershed moment for U.S. Crypto assets.
If passed, the bill would usher in a new era of regulatory clarity and promote the development of the industry. However, if the bill is rejected, the future of crypto assets in the United States will remain unclear, potentially leading to an outflow of crypto asset companies and hindering innovation.
With 10 days until the vote, all eyes are on Washington as lawmakers decide whether to welcome crypto assets with open arms or shut them out.
