The United States House of Representatives on Wednesday approved a bill that would establish the Commodity Futures Trading Commission (CFTC) as the lead watchdog for crypto assets. This decision shifted the role of the Securities and Exchange Commission (SEC).
The bill passed by a broad bipartisan margin, by a vote of 279-136, giving the CFTC the power to regulate digital assets on decentralized blockchains.
Positive Sentiment of the Crypto Industry
Crypto industry leaders have long wanted the CFTC to be the primary watchdog rather than the SEC, which is considered a stricter financial regulator. Under the Financial Innovation and Technology for the 21st Century, passed on the ballot, the CFTC will regulate digital assets on decentralized blockchains, covering most cryptocurrencies and exchanges.
The SEC, which was far more skeptical of cryptocurrencies even before the spectacular collapse of the FTX exchange in 2022, will regulate assets on a decentralized blockchain.
Also read: SEC Begins Discussions with ETH ETF Issuers on Form S-1
However, there are significant exceptions that limit the SEC's authority over digital assets with limited annual sales, limited access for non-accredited investors, and assets that meet certain compliance requirements.
"America has always been a leader in innovation and technology, especially in financial services. To ensure this remains the case, we must support a regulatory structure that continues to foster the spirit of innovation without compromising privacy, provide necessary consumer protections, and preserve market integrity," said Rep. Erin Houchin (R-Ind.) in the Senate chamber.
Check the Crypto Market Today:
Biden administration unhappy
However, the Democratic-controlled Senate is unlikely to discuss this bill, hampering its path to President Biden's desk. The White House in a statement said that this law "lacks sufficient protection for consumers and investors involved in certain digital asset transactions," though officials did not directly threaten a veto.
In the House, many Democrats criticized the legislation. Jim McGovern (D-Mass.) said that it would give "an edge to the crypto industry."
Sen. Maxine Waters (D-Calif.) added, "This represents an extreme MAGA libertarian approach where companies can operate without regulatory oversight and consumers and investors must rely on themselves to detect and avoid fraudulent schemes."
However, Wednesday's vote highlighted the rise of the crypto industry, both politically and economically. Bitcoin's value has risen more than 300 percent since it plummeted due to FTX's bankruptcy.
How to Buy Crypto:
Senate Bans Fed from Issuing Stablecoins
Simultaneously, the board also procedurally passed a bill on Wednesday to prohibit the Federal Reserve from issuing digital currencies, known as CBDCs (Central Bank Digital Currencies), a law that would be another major political victory for the crypto industry.
Republicans claim that a CBDC would give federal financial regulators broad new oversight powers over financial transactions and compete unnecessarily with other digital assets.
Reasons for Banning
"CBDCs are government-controlled, programmable forms of (digital) money that, if not designed like cash—open, permissionless, and private, with large capital P-ups—it not only could, but would provide the federal government with significant levels of individual transaction data and the ability to suppress politically unfavorable activity," said Rep. Tom Emmer (Minn.), whip the GOP and crypto allies, to reporters.
More than 100 countries, including Australia, Spain, Sweden, China, and India, are considering adopting CBDCs, according to the Atlantic Council. The Bahamas, Jamaica, and Nigeria have launched government-backed digital currencies.
Check Crypto Price Today:
How to Buy Crypto on Bittime
You can buy and sell crypto assets in an easy and secure way through Bittime. Bittime is one of the best crypto applications in Indonesia that has been officially registered by Bappebti.
To be able to buy crypto assets on Bittime, make sure you have registered and completed identity verification. In addition, also make sure that you have enough balance by depositing some funds into the wallet. For your information, the minimum asset purchase at Bittime is IDR 10,000. After that, then you can make a crypto asset purchase in the application.
Learn the Complete Guide on How to Buy Crypto on Bittime.
Monitor the price chart movements of Bitcoin (BTC), Ethereum (ETH), Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.
Also read:
SEC Accelerates Ethereum ETF Approval: Will ETH Price Skyrocket?
Uniswap Crypto Skyrocketed 25% in 3 Days, Here's Why!
What Is Crypto AI and Top 8 AI Coins 2024
DISCLAIMER: This article is informational in nature and does not constitute an offer or solicitation to sell and buy any crypto asset. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices may change significantly from time to time and Bittime is not responsible for fluctuations in crypto asset exchange rates.
Comments
0 comments
Please sign in to leave a comment.