The law that will regulate Bitcoin, as well as other cryptocurrencies in the United States, may not be adopted until next year. This is reported by Bloomberg with reference to sources familiar with the facts. But it can still pass the first vote before the end of the year.
This will be a push to accelerate the schedule, partly due to the recent Terra Luna disaster and its algorithmic UST stablecoin. And this acceleration can still benefit the market, because, as we will see, it will take the SEC out of the whole cryptocurrency business.
In fact, this is more than a normal procedure for a law of such importance, in which the commission dealing with agricultural issues in the United States will also directly participate, since this is the CFTC, a government agency dealing with the commodity market. And it will certainly benefit the Bitcoin market and all cryptocurrencies that will not be treated as financial securities.
It is not the cryptocurrency that loses, but the SEC
To understand the importance of this transition, it is necessary to consider several aspects, including the confrontation between various state institutions.
- SEC wants to get it all
But the law in question will ultimately greatly reduce its power. All or most of the industry players will be only too happy, given that the SEC has a bad history of interfering in the work of the markets and has already shown itself in several cases with unprecedented cruelty for many.
The SEC, which in recent days has come under public condemnation and indignation not only for the poor handling of the case against Ripple, but also for what it considers unjustified congressional interference in a market over which it has virtually no jurisdiction.
In general, the situation is interesting for the cryptocurrency world and for Bitcoin, as this will further remove the agency headed by Gary Gensler from cryptocurrencies.
- Technical deadlines
There are technical deadlines that should be shortened, at least in accordance with the wishes of several members of Congress, following to some extent the same “accelerated” procedure that we have seen for MiCa. Speeding up the process would be functional in an attempt to avoid a repeat of certain situations in the markets that we observed a few weeks ago.
Why is this a good news?
Because in reality, the legislation, as already mentioned here and as mentioned in many other places, will prevent what is the biggest danger for the sector, namely that the SEC continues its hypertrophy, and over time becomes even more aggressive towards the sector.
The SEC, which has also shown itself less than favorable towards Bitcoin ETFs, over which it will continue to have jurisdiction in any case. It remains to be seen whether, even with the upcoming midterm elections, there really will be room in the US to discuss this bipartisan attempt to regulate the sector with very broad powers. And whether it can, more importantly, become a guide to action for other jurisdictions.