As the 2024 U.S. elections approach, digital assets are emerging as a pivotal political issue, prompting industry executives and advocates to urge candidates to adopt pro-crypto policies. Despite this growing interest, a clear and comprehensive regulatory framework for digital assets in the United States remains elusive. Regulatory bodies like the Securities and Exchange Commission (SEC) continue to rely on enforcement actions rather than establishing formal rules, creating uncertainty for lawmakers, service providers, and crypto-focused voters.
Understanding candidates' positions on crypto policy is essential for voters, but it's equally important to stay informed about the key pieces of legislation currently under consideration in Congress.
Key Legislative Initiatives
- Financial Innovation and Technology for the 21st Century Act (FIT21)
Introduced by Congressman Glenn Thompson in 2023, FIT21 aims to create a comprehensive regulatory framework for digital assets, bringing sufficiently decentralized assets under the Commodity Futures Trading Commission (CFTC) jurisdiction. The bill outlines criteria for decentralization, such as requiring that no individual has unilateral control over the blockchain. In May 2024, FIT21 passed in the House and is now awaiting Senate approval. - CBDC Anti-Surveillance State Act
Minnesota Rep. Tom Emmer introduced this bill to prevent the Federal Reserve from creating a consumer-facing central bank digital currency (CBDC) or maintaining individual accounts. The bill, which aims to protect privacy and limit government overreach, also passed in the House in May 2024 and is pending a Senate vote. - Clarity for Payment Stablecoins Act of 2024
A reintroduction of a 2023 bill, this legislation seeks to establish a regulatory framework for U.S. dollar-backed stablecoins. A key change in the new draft allows stablecoin issuers with market capitalizations under $10 billion to be regulated at the state level. The bill has not yet passed either chamber, although similar proposals have been introduced in the Senate. - Digital Asset Anti-Money Laundering Act
Proposed by Senator Elizabeth Warren in July 2023, this act would subject digital asset providers to the same reporting requirements as traditional financial institutions under the Bank Secrecy Act. This bill, which has faced significant criticism from the crypto community, has not yet advanced in Congress. - Financial Technology Protection Act of 2023
Introduced by Iowa Rep. Zachary Nunn, this act aims to establish a working group to combat illicit finance in emerging financial technologies. The bill passed in the House and is now under Senate consideration. - Equal Opportunity for All Investors Act
Introduced by Congressman Mike Flood in April 2023, this legislation seeks to expand the definition of an "accredited investor," allowing individuals to qualify by passing a knowledge test administered by the SEC. This bill has passed the House but awaits Senate action. - Blockchain Regulatory Certainty Act
Sponsored by Rep. Tom Emmer, this bipartisan bill aims to exempt blockchain developers and service providers from traditional financial reporting requirements, provided they do not handle customer funds. The bill has advanced in the House but has yet to pass either chamber. - Keep Your Coins Act
Introduced by Ohio Congressman Warren Davidson in July 2023, this consumer protection bill seeks to prevent regulatory agencies from limiting U.S. citizens' use of self-custodial wallets for transactions. The bill's future remains uncertain.
Conclusion
As the 2024 elections approach, the political landscape surrounding digital assets is becoming increasingly complex. With several significant pieces of legislation under consideration, voters need to stay informed about both candidates' positions and the potential implications of these bills. The outcome of these legislative efforts could shape the future of digital assets in the U.S. and influence the broader cryptocurrency market.
November 2024, Cryptoniteuae