According to PANews, the US crypto asset industry is holding its breath as Wall Street circles around Bitcoin (BTC) due to its soaring value. A crucial vote is set to take place in Washington next week that could reshape the regulatory landscape for digital assets. The vote is on the 'Financial Innovation and Technology for the 21st Century Act' (Fit21), which could either welcome the industry or put a brake on its recent explosive growth.
Fit21 proposes a significant shift in how the US government handles digital currencies. Currently, the regulatory landscape is fragmented, with both the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) having a say. The Fit21 bill would establish the CFTC as the primary regulatory body for crypto assets, providing clearer guidelines for the industry.
The bill also aims to set up safeguards to protect consumers from risky behavior and establish protocols for holding these assets and handling them in bankruptcy proceedings. The BTC industry supports Fit21, stating that it is 'crucial' for the future of the US digital asset market. The lack of clear regulations has been a major issue for the industry, with some companies even threatening to abandon the US entirely.
The Crypto Asset Innovation Committee is concerned that the US may fall behind other countries in embracing BTC innovation. In an open letter to legislators, the crypto asset industry stated, 'With this legislation, we can accelerate the development of blockchain technology and digital assets, promote financial inclusion, and protect national security.'
Recently, Wall Street giants have been entering the crypto asset field, adding another layer of intrigue to the upcoming vote. In January, a wave of spot BTC ETFs was approved, opening the door for Wall Street to get a piece of the crypto asset pie. These ETFs allow traditional investors to invest in BTC without having to directly purchase and hold crypto assets.
However, the custody of these ETFs could incur substantial fees, leading some industry observers to worry that Wall Street's involvement could stifle innovation. With the continuous rise in BTC prices and pressure from the digital asset industry and Wall Street, the upcoming Fit21 bill vote is a watershed moment for US crypto assets.
If passed, the bill would usher in a new era of clear regulation and promote industry growth. However, if the bill is rejected, the future of crypto assets in the US remains uncertain, potentially leading to an outflow of crypto asset companies and hindering innovation. With ten days left until the vote, all eyes are on Washington as legislators will decide whether to welcome crypto assets with open arms or keep them at bay.