Big Week for Crypto in DC

Key Takeaways
  • Crypto scored big regulatory wins in DC, both in Congress and with the SEC.
  • The wins are a sign of the effectiveness of the crypto lobby's efforts on Capitol Hill.
  • This weekend, President Biden will decide on whether to veto a Congressional override of a proposed SEC rule concerning the custody of crypto assets, known as SAB 121.

Supporters of crypto had a very good week in DC, with two pro-crypto bills passing the House and the SEC approving spot exchange-traded funds (ETFs) for Ethereum. 

The first House-passed bill would set up a new regulatory scheme for crypto by dividing authority between the Commodity Futures Trading Commission (CFTC) and the Securities Exchange Commission (SEC).  Having clear rule-making authority would likely improve investor confidence in new products.  The bill passed the House on a large bipartisan vote of 279 YES to 136 NO under the leadership of House Financial Services Committee Chair Patrick McHenry. Seventy-one Democrats joined most Republicans to pass the bill.

While the vote sent a strong statement of House support, the bill is likely to hit a speedbump in the Senate, where Banking Chair Sherrod Brown and senior committee member Senator Elizabeth Warren have expressed reservations with the proposal and are unlikely to take up the bill this year.

A second bill to prohibit the Federal Reserve from issuing a Central Bank Digital Currency (CBDC) didn’t get the clear bipartisan vote that the legislation establishing a crypto regulatory structure did. The vote was 216 YES to 192 NO.  Like the other crypto bill, it will also face tough sledding in the Senate.  But it does demonstrate the growing success of the crypto lobby in DC.

Last week Congress approved a resolution of disapproval for the SEC’s Standard Accounting Bulletin 121 (SAB 121).  As the House was considering the bill, the White House issued a veto threat. In the next few days the President will need to decide if he will carry through with his veto threat. The general assumption is that he will veto the bill – stay tuned.

Disclosures (show)

Stay up to date with the latest articles and business updates. Subscribe to our newsletter

Articles Read 1/2

🎁 Unlock 1 extra article by joining our Community!

Stay up to date with the latest articles. You’ll even get special recommendations weekly.

Already have an account? Sign In

Don't Miss Out
First Month Free

Trending tickers in our research
Ticker Price Chg%
$122.27
-1.63%
$486.58
+0.97%
$201.50
+0.15%
$227.95
-2.32%
$22.20
-1.60%
$32.75
-2.93%
$121.22
+0.55%
$41.68
+1.17%
$164.08
+4.05%
$316.78
+1.88%