US Pushes for New Crypto Rules, Aims for Spring Approval!!!
US Treasury Secretary Scott Bessent is calling for quick action on a new law to regulate cryptocurrency. He hopes the rules will be finalized this spring.
The goal is to create clear guidelines for the crypto market. A key part of the plan is to put the main spot trading of digital assets under the watch of the Commodity Futures Trading Commission (CFTC), a US financial regulator.
However, there are disagreements to resolve. One major debate is about "rewards" or interest payments on stablecoins. Traditional banks oppose this, arguing it gives crypto companies an unfair advantage. Recent news about foreign investments in crypto projects linked to politicians has also led to calls for stricter ethics rules in the bill.
Despite these challenges, key politicians from both parties believe an agreement is possible this year. The process involves combining different proposed laws from several congressional committees into one final version.
Advantages:
It creates a legal framework, making the U.S. a safer place for crypto businesses to operate and invest. The bill aims to set up regulated pathways, bringing crypto trading and innovation back to the U.S. instead of pushing it to offshore platforms. Clear rules build trust, making institutions more likely to invest significant money into the crypto market.
It establishes standards (like those for stablecoins) to prevent fraud and ensure companies hold sufficient reserves to protect consumers.
❌ Potential Disadvantages
Companies will face new costs for legal compliance and adapting to rules, which could be a burden. Strict rules might slow down the development of new, cutting-edge crypto projects and DeFi applications. As seen in negotiations, popular features like earning rewards on stablecoins may be restricted to protect traditional banks. Regulations typically require identifying users, which moves away from the original anonymous and decentralized nature of crypto.
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