Prominent crypto commentators criticize the new crypto tax reporting rules proposed by President Joe Biden, fearing that they will push the crypto industry further away from the US and stifle innovation.
Crypto-related stocks soar as the chances of fund companies offering Bitcoin ETFs increase, though Coinbase Global faces obstacles.
The rejection of a new bill on cryptocurrency regulation by the Australian Senate reflects the country's cautious approach and leaves the industry without legal guidelines as crypto innovation continues.
Ripple Labs Chair Chris Larsen believes that the US legal system needs to take the lead on crypto policy after the Biden administration's mishandling of the industry, stating that it is time for Congress to step in and provide clarity and regulation.
Crypto fundraising platform, The Giving Block, has called for the elimination of appraisal requirements on crypto donations, stating that the current requirements are burdensome for donors and offer no value to charities or the U.S. Treasury. The company argues that crypto assets, including stablecoins, have self-evident values and do not need to be appraised like other assets. They have sent a letter to Senators Ron Wyden and Mike Crapo urging them to support the change.
Coinbase CEO Brian Armstrong predicts that cryptocurrencies will be a prominent topic in the 2024 US elections as the gap between current crypto policies and the needs of Americans becomes more apparent.
U.S. Securities and Exchange Commission Chair Gary Gensler continues to emphasize the importance of crypto companies complying with securities laws, despite recent setbacks in court cases against the industry. Gensler will discuss recent enforcement actions and proposals related to cryptocurrency firms but will avoid discussing ongoing litigation, including high-profile cases against Coinbase and Binance.
Senator Sherrod Brown has expressed a negative view of the crypto industry, stating that it is rife with fraud and abuse, making his support crucial for any future crypto legislation in the US. Securities and Exchange Commission Chair Gary Gensler has also criticized the sector, but Brown's stance is seen as pivotal for the industry's regulatory framework.
A bipartisan bill backed by Elizabeth Warren to target money laundering in crypto has gained support from key lawmakers, but its passage remains uncertain due to a divided Congress and opposition from crypto lobbyists.
Crypto analyst Will Clemente suggests that the US economy's need to issue more dollars to service its debt will inevitably lead to significant currency debasement, making Bitcoin the most promising asset for investors looking to protect their wealth. With the growing digital trend and a wave of Bitcoin adoption, Clemente believes that alternative monetary systems will become increasingly favorable.
Coinbase, the largest U.S. cryptocurrency exchange, is actively engaging with Ohio voters through events, ads, and lobbying efforts, highlighting the potential economic benefits of the crypto industry to the state. They are pushing for the passage of the FIT21 Act, which would provide regulatory clarity for cryptocurrency exchanges. However, the legislation's fate is uncertain, as there are differing opinions among lawmakers regarding crypto regulation.
Coinbase, the U.S. cryptocurrency exchange operator, may invest more elsewhere if the U.S. cannot get crypto regulation right, raising questions about whether the U.S. is still the primary hub for crypto innovation and development.
Coinbase CEO Brian Armstrong believes that the crypto industry needs to enhance its lobbying efforts before the 2024 elections in order to address the unfair regulatory environment faced by US-based crypto firms.
Sen. Kirsten Gillibrand is rallying fellow Democrats in Congress, particularly those on the Senate Banking Committee, to prioritize crypto regulation and believes that bipartisan support can be achieved through conversation and socialization of ideas in her digital assets bill co-authored with Sen. Cynthia Lummis; however, progress in the Senate remains uncertain due to crypto skepticism among some lawmakers and the current funding stalemate that may result in a government shutdown.
Experts suggest that the crypto industry's most urgent needs, such as SEC decisions on ETF applications and progress in court cases, won't be entirely derailed by a potential government shutdown, although there may be temporary slowdowns and a halt to SEC enforcement against crypto firms. Federal courtrooms are expected to operate normally for a few weeks, and criminal trials will continue, but the progress of cryptocurrency legislation in Congress may be stalled. If the shutdown persists, it may have significant repercussions as unpaid employees leave and government offices exhaust their funds.
If U.S. lawmakers don't reach a decision on government spending by Sept. 30, bills focused on crypto regulation, market structure, and stablecoins could be put on hold, potentially impacting the progress of crypto legislation in Congress.
Crypto-friendly Rep. Patrick McHenry is temporarily replacing Speaker of the House Kevin McCarthy, which could help progress on digital-asset regulations in the US, with several crypto bills expected to be brought up for floor votes soon. However, Senate approval is still needed for these bills, and the discordant Republican caucus in the House may slow down the process.
The leadership mess in the U.S. House of Representatives could disrupt crypto legislation, casting uncertainty on the industry's hopes for clear regulatory rules and leaving it at risk of being sidelined as a volatile financial sector. The budget debate and the search for a new speaker of the House may delay progress, but there is still a possibility for crypto bills to advance before the end of the year. However, the Senate remains a hurdle, as there is limited enthusiasm among senators for crypto legislation.
