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The latest and most in-depth bill introduced to regulate crypto assets and blockchain technology has been announced. As it currently stands at the time of writing this (11:50 AM June, 8th) the proposed bill has not been introduced on the floor and has not made its way to Congress.gov the website that allows you to follow the actions taken on particular legislation. With that being said a ton of information has come out about this legislation and I think a quick overview of what has been announced and the effects that this will have on crypto users.
It is important to note that this legislation like all will not make everyone happy that is really the name of the game the goal is to try and figure out what would be best/make the most people happy. This proposed legislation offers a variety of changes that will naturally help foster more adoption and growth. Out of all of the changes one, in particular, stuck out and is critical for the industry overall. The crypto community should be ecstatic to see that this legislation will remove SEC jurisdiction. The regulator body that will be put in charge is the Commodity Future Trading Commission or CFTC.
The CFTC is being put in charge because MOST but not all crypto assets will be classified as commodities. While this still falls short of being considered a currency it is a huge improvement over being classified as an asset. As most of yall know the SEC has been foaming at the mouth to get additional help to go after more and more crypto companies, organizations, and individuals. A prime example is the Ripple Lawsuit which has been going on for years at this point and seems to just be stuck in consistent extensions. It seems that every time we finally get close to a huge court date the true decisions we need are pushed again while we get a little taste of what is to come.
There is also a provision aimed at preventing taxation on small transactions. Currently, this is not on the books so every transaction no matter how small is taxed. By getting rid of this people will not have to worry about recording all of the transactions. Removing barriers is something that crypto has excelled at so it is extremely encouraging to see Congress look to remove some that they have caused.
Now as much as I like this legislation I have talked to my friends in the Senate and the odds of this even being brought up on the Senate floor are almost zero. This bill has not officially been submitted but I would expect to see this done by the end of the week since it has been a huge announcement. With how Congress works as soon as it is submitted it will be sent off to a committee (in this case there are going to be several) each one would have to vote to move it back to the Full Senate for a vote and this is where it hits its snag. While it is a pressing issue for us the various Chairs in the Senate I would expect to see this bill go to will not see it that way so it will not get the attention it needs to be moved back to the Full Senate. If it somehow does I would expect to see this easily pass and head over to the House. Over on this side, I can say with 110% certainty that it will "die" in committee which means it was never discussed.
What this whole bill does though is set up Congress to address this issue next year when we have a new Congress in place. This is a piece of legislation that once focused on should be easily moved through by both sides as a growing number of members are behind crypto and if anything would want the legislation to go further. Next year from what I am seeing and hearing is geared up to be a great year for crypto in Congress because there will be another infusion of much younger adults and those who are on the older side have tipped their hand at being pro crypto! Over the next few days I will be diving in deeper to this bill especially once it officially drops and there is text on the record to be read.
Please know I am not a financial advisor and make sure you do your own research! If you enjoyed this article and would like to further support me below are a few referral links that if you used when signing up I would appreciate it! Also, follow me on Twitter @Cje95_
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