The US is looking at a sudden positive turn of events for its crypto firms with the move, as multiple crypto regulatory bills gain pace.
Just a day after two crypto bills passed their first stage in the US, two more have been approved by a US House Committee. The Committee is responsible for the earlier bill’s approval as well. The latest two crypto bills are for stablecoin regulation and for crypto self-custody. The bills are the Keep Your Coins Act and the Clarity for Payment Stablecoins Act.
The former bill would be responsible for enabling investors to hold custody of their crypto assets through self-custodial wallets. The latter is purely for the regulation of stablecoins and its issuance. Various crypto firms have reacted positively to the news. Many have hailed the decision, terming it a ‘historic week’ for crypto in the US.
The stablecoin bill’s discussions had been stopped earlier for various reasons but resumed recently. Parallelly, the Financial Innovation and Technology for the 21st Century Act also passed the US House Agriculture Committee. It passed the stage after lawmakers debated the bill in the Financial Services Committee. Altogether, the House Committee passed seven financial services bills.
A press release by the Financial Services Committee said, “Today, the House Financial Services Committee passed seven pieces of legislation out of Committee that establish a regulatory framework for payment stablecoins, protect self-custody for digital assets, overturn the CFPB’s disastrous small business lending data collection rule, and combat the influence of ESG initiatives in our financial markets. Included among this legislation is the Clarity for Payment Stablecoins Act, introduced by Chairman Patrick McHenry (NC-10).”
The opposing party’s members raised their concerns regarding the bill, including consumer protection. The bill was passed with a majority by the committee after hearing comments from other lawmakers.
Days back, crypto firms in the United States were embroiled with the Securities and Exchange Commission. The legal battle that occurred between them sent a mixed single to the industry. Fortunately, with the crypto regulatory bills, the industry could heave a sigh of relief for a while.
However, the bills have only passed their first stage as they await further approvals.
The stablecoin regulation bill’s approval also collides with reassurance from an expert. A former analyst of the Federal Reserve Board has released a document listing the benefits of stablecoins. Brendan Malone claimed stablecoins have better risk management than bank deposits. He listed several other benefits of stablecoins in his document.
He also diverted focus to its regulation, stating how it could help the overall framework of stablecoins. Crypto regulation has endured various ups and downs in the last few months. The shining moment for the crypto industry finally seems to have arrived in the world’s largest economy.