Congress introduces game-changing crypto bill amid $350 billion price pump for Bitcoin, Ethereum, BNB and XRP

[ad_1]

Update 06/05 below. This article was originally published on June 3

BitcoinBTC and ethereumas along with top five cryptocurrency rivals Ripple’s XRPXRP and Binance’s BNBBNB have exploded this year, adding $350 billion to the crypto market in 2023 (triggering a flood of bullish predictions).

Subscribe now to Forbes CryptoAsset & Blockchain Advisor and successfully navigate the bitcoin and crypto market roller coaster

Bitcoin price fell last month from its 2023 peak of just over $30,000, dragging down Ethereum price as well as XRP and BNB, even as Goldman Sachs and Microsoft quietly shed the foundations for the next bull run.

Now, amid fears that a crypto “powder keg” is about to ignite, US lawmakers have proposed a “working framework” aimed at providing regulatory clarity for bitcoin and crypto companies in the world. country.

It is at the beginning of a bull run that you need the most up-to-date information! Sign up now for CryptoCodexA’s free daily newsletter for traders, investors and the crypto-curious that will keep you ahead of the market

MORE FROM FORBESCrypto Now Prepared for a ‘Powder Keg’ That Could Play Havoc with the Price of Bitcoin and EthereumBy Billy Bambrough

U.S. lawmakers have introduced a bill to Congress that proposes a clearer delineation of authority… [+] between regulators on cryptocurrencies including bitcoin, ethereum, BNB, and XRP.

Getty Images

The 162-page bill, unveiled by House Financial Services Committee Chairman Patrick McHenry, a Republican from North Carolina, and House Agriculture Committee Chairman Glenn Thompson, a Republican from Pennsylvania, is an attempt to revive discussions between Republicans and Democrats on both committees. , reported Bloomberg.

In recent weeks, some of the biggest US bitcoin and crypto companies have warned that the country is falling behind the rest of the world when it comes to crypto legislation, with Hong Kong’s new regulatory regime coming into effect this week. alongside the European Union’s flagship markets in crypto assets (MiCA regulation) being enacted.

Major crypto exchanges, including Nasdaq-listed Coinbase, have fought with regulators over whether certain cryptocurrencies are sold and traded as unregistered securities. In late 2020, the U.S. Securities and Exchange Commission (SEC) sued Ripple, accusing the company of selling $1.3 billion worth of unregistered securities through its cryptocurrency XRP (Ripple’s chief executive recently said he was “confident” of an imminent outcome).

Update 06/05: The new crypto bill comes amid growing fears in the crypto industry that the US government and regulators are involved in a concerted effort to remove crypto from the banking system by as “Operation 2.0 chokepoint” a reference to a 2013 U.S. Department of Justice policy to exclude industries deemed to be at high risk of fraud and money laundering from the banking system.

“In the United States, we know it’s coordinated,” Nic Carter, a Castle Island Ventures investor who coined the term “operation chokepoint 2.0,” told the What Bitcoin Did podcast. “We absolutely know that. It’s certain officials in the Biden administration who are working with specific regulators, especially banking regulators, to marginalize the bitcoin and crypto industry.”

Carter warned that the Biden administration and regulators’ hostility toward the crypto industry grew in the wake of the collapse of FTX last year and played a role in the collapse of banks crypto-friendly Signature and Silvergate earlier this year.

The new US Crypto Bill, after several attempts to pass crypto legislation in previous sessions, proposes that cryptocurrencies offered as part of an investment contract fall under the oversight of the SEC, while those that are considered commodities would be overseen by the Commodity Futures Trading Commission (CFTC).

Whether cryptocurrencies such as bitcoin, ethereum, Binance’s BNB or Ripple’s XRP are defined as securities or commodities will depend on whether their underlying blockchain is decentralized, decided by a SEC decision.

Sign up now for CryptoCodexA free daily newsletter for the crypto-curious

MORE FROM FORBESJPMorgan Reveals $900 Billion Gold-Based Bitcoin Implied Price Alongside Ethereum Upgrade Prediction WarningBy Billy Bambrough

Bitcoin price soared in 2023 after last year’s sudden crash that wiped out $2 trillion… [+] of the combined price of ethereum, Binance’s BNB, Ripple’s XRP, and the broader crypto market.

Forbes Digital Assets

The bill won applause from some bitcoin and crypto industry players ahead of a House Agriculture Committee hearing on digital asset regulation scheduled for June 6.

The bill “lays a solid foundation for regulatory jurisdiction and definitions,” Paul Grewal, chief legal officer of Bitcoin and Crypto Exchange Coinbase, said on Twitter. “A comprehensive bill of this magnitude warrants a thorough review, which will be well done over the next few days, but what we have seen so far is encouraging.”

“It’s a win this year for crypto to even get attention in DC right now, after last year’s setbacks,” Ryan Selkis, founder of crypto data firm Messari, tweeted. , adding, “There’s still a lot of work to do to get to a workable bill, but it’s a good starting point for a sensible market structure bill.”

[ad_2]