The US Congress Will Vote on Two Bills That Could Cripple the SEC
The US Congress will vote on two bills affecting the Federal Reserve and the Security and Exchange Commission.
The initial bill seeks to forbid the Federal Reserve from creating a bank or currency and to establish a precise definition of what qualifies as a security, specifically excluding investment contract assets from being classified as securities.
This effectively removes crypto regulation from the SEC’s purview.
The second bill asserts that crypto is a First Amendment right, and the people and their elected officials must drive any legislative changes. Last year, there was a major victory in this regard, and this week is equally significant as @GOPMajorityWhip’s two bills are up for a vote in the US House of Representatives.
US Congress Could Ban CBDC Issuance
The H.R. 5403, CBDC Anti-Surveillance State Act unequivocally prohibits Federal Reserve banks from offering financial products or services directly to individuals or managing individual accounts.
Additionally, it expressly forbids the creation of a central bank digital currency for individual use or to implement monetary policy.
Furthermore, the Department of the Treasury prohibits instructing the Federal Reserve to develop and issue a central bank digital currency.
How It Will Affect Crypto
The Securities Clarity Act, also known as H.R.4451, aims to redefine security in investments. This means that certain tangible or intangible assets sold as part of an investment contract would not be classified as securities under this new legislation.
Notably, an X user expresses their excitement: “If we improve money, we can improve the world. They have highlighted two important issues – addressing the threat of a central bank digital currency (CBDC) and defining security.”
However, another voiced, “It is encouraging to see that some elected officials are working to limit our government from implementing a CBDC and are working to define clearly what is considered security. Both of these issues have a significant impact on the wellbeing of the people.”
Additionally, “the big question is whether these bills will pass. Understanding who supports and who opposes will be crucial as we get closer to the election this year,” he concluded.
While some individuals in the crypto community find these developments interesting, others have raised concerns. For example, if the second bill passes, there are questions about how a US-based exchange can operate. This could potentially lead to strict liability offenses. The alternative approach, some form of embodiment, may be a much better solution.
The latest move will undoubtedly give the crypto market more space for growth. It comes amidst two US senators’ recent endorsement of Bitcoin.