As a seasoned crypto investor with a keen interest in regulatory developments, I find this weekly newsletter from CoinDesk to be an invaluable source of information. The article provides a comprehensive overview of the latest happenings in the crypto space, including regulatory updates, market trends, and industry news.

Last week in Austin, Texas, CoinDesk hosted its annual Consensus conference. This event brought together legislators and regulators, developers, company executives, and various other individuals involved in the crypto sector. A significant topic of debate was the Financial Innovation and Technology for the 21st Century Act. The bill’s approval in the House sparked enthusiasm within the cryptocurrency industry as a potential step forward, although its transformation into law remains uncertain at this point.

And on another note, I wanted to thank everyone who said hi to me at Consensus last week. It was great seeing all of you.

As a cryptocurrency analyst, I would recommend checking out the State of Crypto newsletter published by CoinDesk. This insightful publication explores the intricate relationship between digital currencies and governing bodies. To ensure you receive future editions, kindly click here to subscribe.

Next steps

The narrative

Last week, during their respective meetings, Representatives Patrick McHenry and Tom Emmer, as well as Senator Ron Wyden, expressed their views on the Financial Innovation and Technology for the 21st Century Act (FIT21).

Why it matters

One significant point of debate was the House’s approval last month of the Financial Innovation and Technology for the 21st Century Act, a legislative proposal aimed at modernizing market structures and significantly altering the regulatory landscape for crypto businesses in the US, should it be enacted. However, given the Senate’s current composition, the bill’s prospects for advancement are limited.

Breaking it down

Passing a bill in the Senate involves intricate procedures. According to previous reports by CoinDesk, there’s a possibility that the Senate might need to begin anew with crafting a market structure bill, which implies going through the comprehensive committee process once more.

As a crypto investor, I’d put it this way: Last week, during a public appearance, House Majority Whip Tom Emmer (R-Minn.) shared that if the current form of the bill makes it to the Senate floor, there’s a strong likelihood that they will modify certain provisions or aspects of the bill. In such a scenario, the bill would then return to the House for further review and potential amendments.

He expressed that the optimal timing for completing this task is this year. It might be most feasible to accomplish it towards the end of the year, once the current chaos subsides and all parties involved realize the urgency of the situation.

As a crypto investor, I’m excited to share that Rep. Patrick McHenry, the chairman of the Financial Services Committee, expressed his confidence in the enactment of the Financial Institutions Technology Act 2 (FIT21) within the upcoming year. With an impressive 279 votes in favor during its passing, this legislation has garnered significant support among congressional members.

“It was beneficial and positive that the White House didn’t threaten a veto on FIT21. This indicates their willingness to collaborate and engage in policy-making. However, dealing with the Senate can be intricate and complex as usual.”

The backers of the bill then plan to contact Senators regarding the legislative proposal.

As a researcher studying legislative processes, I’ve observed that if a bill garners the support of two-thirds of the House of Representatives, it is often able to secure the same level of backing in the Senate, or at least a substantially similar version of the bill.

Senator Ron Wyden from Oregon, among the Democratic legislators who opposed the SEC’s repeal of Staff Accounting Bulletin 121, expressed his viewpoint on FIT21 by stating, “What we truly require is a well-defined regulatory structure.”

“Chairman McHenry aims to accomplish that,” he remarked. “It’s crucial to take a firm stance against swindlers and deceitful individuals.”

“The progress of the bill is uncertain, but I agree with Chairman McHenry’s initiative to set up a regulatory system and target fraudsters more effectively,” he commented.

In the upcoming weeks, this newsletter will feature the text versions of select discussions that took place at Consensus.

Stories you may have missed

Wall Street Asks Biden Not to Veto Congress’ Rejection of SEC Crypto Policy: A group of lawmakers and a group of banking organizations sent two separate letters to U.S. President Joe Biden on Friday, asking him to sign House Joint Resolution 109 to overturn the SEC’s Staff Accounting Bulletin 121 instead of vetoing it, as he had threatened to.
U.S. President Biden Vetoes Resolution Overturning SEC Guidance: U.S. President Joe Biden vetoed H. J. Res. 109 on Friday, as he had threatened to.
Terraform, Do Kwon Agree in Principle to Settle Fraud Case With SEC: Court Filing: After a jury found Terraform Labs and Do Kwon liable for fraud, the company has come to an agreement with the SEC.
Flood of Cash from Coinbase Gives Crypto One of the Biggest Campaign War Chests: Coinbase, Ripple and Andreessen Horowitz have each donated $25 million to Fairshake, a crypto-focused political action committee, and its affiliates over the last week. The PAC now has more than $161 million, one of the largest cash stockpiles for the 2024 election.

This week

What's Next for FIT21? (A Consensus 2024 Recap)

Tuesday

14:00 UTC (10:00 a.m. ET) The CFTC’s Global Markets Advisory Committee met Tuesday, though crypto wasn’t a major part of the agenda. Basel III Endgame was, though!

Wednesday

13:00 UTC (9:00 a.m. ET) The House Financial Services Committee will hold a subcommittee hearing on tokenizing real-world assets.

Elsewhere:

(The Washington Post) There’s a lot to consider in this story about Post reporters’ efforts to have AI tools create photos of women, ranging from data collection practices to data availability to just how the internet experience might be for people.
(Minnesota Reformer) This is a bizarre situation out in Minnesota – someone reportedly attempted to bribe a juror in a high profile trial, leading to that juror being excused, the rest of the jury being sequestered and the defendants being taken into custody.

If you have ideas for topics I should cover next week or any suggestions you’d like to make, please don’t hesitate to reach out to me via email at nik@coindesk.com or connect with me on Twitter @nikhileshde.

You can also join the group conversation on Telegram.

See ya’ll next week!

2024-06-05 06:38

What’s Next for FIT21? (A Consensus 2024 Recap)