As 2023 comes to a close, the cryptocurrency market has faced significant legal cases and leadership changes, leading to intensified calls for comprehensive crypto regulation in 2024. However, experts have low expectations for legislative action in the coming year.
Significant Legislative Proposals of 2023
In 2023, two major crypto-related bills were introduced by Republican lawmakers, highlighting the growing attention to cryptocurrency regulation.
H.R. 4766: Clarity for Payment Stablecoins Act
This bill proposes a detailed regulatory framework for stablecoins, emphasizing redeemable variants. It envisions a dual oversight system, balancing federal and state jurisdiction, and addresses the role of subsidiaries of insured depository institutions.
The Lummis-Gillibrand Responsible Financial Innovation Act
This bipartisan bill aims to establish a comprehensive digital asset policy in the US. Noteworthy provisions include mandatory CFTC registration for crypto exchanges, limitation of stablecoin payments to banks or credit unions, and stringent penalties for violating anti-money laundering laws.
Challenges and Outlook for These Bills
Both bills face a complex legislative journey, encountering diverse challenges and only a 25% predicted chance of passage in 2024.
2024: A Year of Expectations and Uncertainties
The coming year is poised to be significant for crypto regulation, with several factors influencing the legislative landscape. The SEC’s Staff Accounting Bulletin No. 121 will be under congressional review, impacting how customer crypto holdings are recorded. The 2024 elections could play a crucial role, potentially affecting the direction and momentum of crypto-related legislation.
In anticipation of regulatory clarity, the outcomes of these legislative efforts are set to shape the future of digital assets in the United States, marking 2024 as a potentially transformative year in the realm of crypto regulation.
Hot Take: The Future of US Crypto Regulation in 2024
As the crypto industry prepares for 2024, the prospect of comprehensive regulation remains uncertain. With a complex legislative journey and significant factors influencing the potential outcomes, the coming year is poised to shape the future of digital assets in the United States.
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