The US Congress introduced more than 80 new tickets for consideration related to the crypto industry, so far, several of which have been enacted.
Former US Federal Deposit Insurance Corporation (FDIC) regulator Jason Brett issued a article outlining over 50 different digital asset bills introduced in Congress that impact “crypto regulation, blockchain, and CBDC policy.”
Invoices consist of six different categories:
“Categories include crypto taxation, central bank digital currency (CBDC), cryptographic clarity on the regulatory treatment of digital assets and digital asset securities, support for blockchain technology and issues of sanctions, ransomware and implications involving China’s or Russia’s use of blockchain or cryptocurrency, and access to and limitations on the use of crypto by US elected officials .
Crypto-related invoice proposals
Brett is referring to HR 3684 – the Crypto Tax Bill – which “must be implemented in terms of crypto tax reporting requirements by January 1, 2023.” Some of the wording in the HR 3684 bill is controversial because it may require cryptocurrency miners and stakers to pay a tax in fiat on illiquid cryptoassets.
However, the industry does not know how the state could enforce such a tax or how miners, stakers and programmers will report the necessary information to tax authorities. Brett wrote:
“There have been no less than five bills introduced to try to change or reverse the impact of the legislation.”
Additionally, Congressman Tom Emmer previously introduced the Safe Harbor for Taxpayers with Forked Assets Act of 2021 (HR 3273) to protect investors who have received assets from forked strings. HR Bill 3273 would cover all new coins issued in the proposed fork of the Terra LUNA blockchain being governed.
Congress has also introduced a bill to study the potential for implementing a central bank digital currency (CBDC) with:
“focus on inclusion, accessibility, security, privacy, convenience, speed and pricing considerations for individuals and small businesses, monetary policy impacts and systemic risks to the financial system worldwide, among others.
Other proposed bills aim to study the impact of central banks allowing Bitcoin as legal tender, reduce CBDC exposure to the public, and use a digital dollar as a method of distributing stimulus funds.
In terms of regulations, several bills have been introduced to clarify terminology regarding blockchain developers, definitions of digital asset securities, potential manipulation of virtual currency prices, and to ensure that:
“an investment contract asset … is separate and distinct from the securities offering of which it may have been a part.”
Passed cryptography legislation
The “National Defense Authorization Act for Fiscal Year 2022” (S.1605) makes reference to cryptocurrency in an update to the “NATIONAL ANTI-TERRORISM AND OTHER ILLICIT FINANCING STRATEGY”.
The bill removes the Tongue:
“such as so-called cryptocurrencies, other computer, telecommunications or Internet-based methods, cybercrime” of the legislation.
This translates into law now reading simply:
“Trend Analysis of Emerging Illicit Financial Threats –
A discussion and data regarding trends in illicit finance, including evolving forms of value transfer
such as so-called cryptocurrencies, other computer, telecommunications or Internet-based methods, cybercrime.
The analysis concerns the “national strategy to combat the financing of terrorism and the illicit financing associated with it”.
The second bill to be passed is the “Consolidated Credits Law, 2022”, related to the situation in Ukraine. In a section titled “Other Matters,” the bill enshrines in law that;
“The Director of National Intelligence will provide Congressional Intelligence Committees with a briefing on the feasibility and benefits of providing training…on cryptocurrency, blockchain technology, or both.”
The Director of National Intelligence will undertake the training briefing within 90 days of the law, which passed on March 15, 2022. This indicates a desire by Congress to better educate itself on the potential benefits of blockchain technology, which is undoubtedly essential given the number of blockchains. – related bills currently pending in Congress.
Future Crypto Laws
Any bill may be publicly seen online by anyone interested. The increase in the volume of laws referencing crypto and blockchain can be seen as a bullish indicator for a market that is currently experiencing a significant downturn.
After seven red candles on the weekly Bitcoin chart, it is essential to note that the crypto industry is not entirely dependent on price action. Global adoption and development is integral to building a strong, resilient, scalable crypto industry that is resilient in the face of a bear market.
A rise in crypto in Congress does not mean that new bills will be pro-crypto. Yet, progress is impossible without crypto being part of the conversation.