Crypto Regulation Fight Begins

Crypto Regulation Fight
Begins
By: www.ProfitableInvestingTips.com

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regulation-fight-begins
The cryptocurrency world is maturing.
Despite the recent slide in value of Bitcoin
and others crypto is here to stay. The
government has come to realize this.
President Biden issued an executive order
recently directing federal agencies to sort
out who will be in charge of what in
regard to crypto regulation and a
digital US currency.

As one might have expected crypto
promoters are busy lobbying for the
features that they want in any legislation
and regulatory schemes. As the real
crypto regulation fight begins one may
wish to pay close attention as the
outcome will determine the future of
Bitcoin and the rest.

Who Is Leading the Crypto Charge in
Congress?

Two US senators are co-sponsoring
legislation that has to do with
cryptocurrency regulation. As noted in an
article in Politico, crypto lobbying has
accelerated as the bill created by Senators
Cynthia Lummis of Wyoming and Kirsten
Gillibrand of New York is ready to go to
committees.

Not surprisingly, both Lummis and
Gillibrand want their states to be central in
the world of cryptocurrencies. As Politico
notes, the details of the proposed
legislation will give us hints as which
lobbyists will be most influential in getting
the final results that they want.

Hyping Legislation to the Crypto Public
and Others

Senator Lummis has been especially active
promoting how she wants a US digital
currency to turn out. She has spoken at
crypto festivals nationwide and appeared in
podcasts before industry groups. Senator
Gillibrand came along to co-sponsor in March
of 2022 providing a bipartisan front. A serious
problem with this legislation is that the vast
majority of senators and representatives do
not have a comprehensive understanding of
cryptocurrencies or how a digital US currency
would or should work.

Thus, they will be “educated” by lobbyists
who are the ones most likely to benefit
financially if their “suggestions” go into
the final legislation. This is how it always
works which is why we commonly see
problems with legislation, problems that
need to get fixed with subsequent
legislation, regulatory action, or executive
orders.

What Do Crypto Lobbyists Want?

The lure of Bitcoin and the rest has been a
financial system free from traditional
stake holders like banks and government
regulators. The wish to retain and legalize
a decentralized system free of oversight
seems to be at the root of what lobbyists
want.

Crypto promoters want the law to shield
them from the rules that apply to the rest
of the financial world. This issue will
become more and more important as
DeFi expands and crypto become integral
to many parts of the developing
Metaverse.

What Do the Senators Want?

The job of a US Senator is to represent the
people of their state and get everything they
can for their constituents. Robert Byrd of
West Virginia proudly displayed a map of all
of the road project in his state that he got
financed by the federal government. Senator
Lummis wants Wyoming to be the Mecca for
cryptocurrencies in the USA. Senator
Gillibrand argues that New York is already the
financial capital of the country if not of the
world so adding crypto to the mix is simply a
no-brainer.

Meanwhile the legislature in Wyoming is
working on legislation to make
decentralized trading platforms and crypto
banks locate there. The mayor of New
York City, Eric Adams, made a point of
investing his first paychecks in Bitcoin. We
expect that as Bitcoin has plunged he has
rethought this course of action.

Who Will Regulate and What Will the
Rules Be?

The Securities and Exchange Commission
head, Gary Gensler, has been adamant
that digital assets will fall under his
jurisdiction. Industry lobbyists are working
on creating loopholes to prevent the
degree of control that Gensler probably
envisions. One suggestion is that any
crypto transaction less that $600 will be
exempt from any oversight.

That is likely to attract attention from the
IRS which taxes crypto capital gains. A
big problem as seen by the President
when he issued his executive order is that
there are laws and regulations that pretty
much cover all crypto issues. But they are
not all under one governmental “roof.”

The point of the executive order is to get all
of the regulatory ducks in a row and then
be ready for the onslaught of lobbying.
Not all of the infighting will be between
lobbyists and members of Congress but
between various crypto interest groups
who all want any forthcoming legislation
to benefit their particular causes.

For more insights and useful information
about investments and investing, visit
www.ProfitableInvestingTips.com.

Crypto Regulation Fight Begins

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