Blockchain Association official Ron Hammond declared this week as the most important week for cryptocurrencies in the US capital, in a statement today.
Crypto Bill Awaits Presidential Decision
SAB 121 CRA, a crypto bill that garnered a staggering 60 votes in the Senate, is currently on President Biden's desk, awaiting his decision by May 28. The bill received support from both the House Speaker and the Senate Majority Leader. Despite Biden's first sign that he would veto the bill before it votes in the House of Representatives, strong support from top Democrats in the Senate has put the White House in a difficult position.
Another bill that Biden initially signaled he would veto, the DC Crime CRA, became law after a significant defection from most members of his own party. This precedent suggests the possibility of Biden reversing his stance on SAB 121 CRA. Increasing understanding of the importance of cryptocurrencies for many voters, especially young voters, may also affect this decision.
FIT21: A New Regulatory Framework
This week will also mark a major milestone with the House of Representatives scheduled to vote on FIT21, a comprehensive crypto regulatory framework. Talks will begin Wednesday, with a vote expected late Wednesday afternoon or early Thursday. Given the SEC's unsuccessful arguments against a crypto framework, the bill is expected to receive significant bipartisan support.
A year ago, the SEC argued that the rules were clear, the laws did not need to be updated, and that they had not been defeated in court in all crypto cases. However, their recent defeats in the courts, lack of action against bad examples like FTX, and involvement in high-profile crypto cases have shown that the current status quo is not working.
The FIT21 vote could see a rare strong bipartisan vote in a fractured Congress. The level of support will determine whether the bill has any traction in the Senate, which is less concerned with the crypto market structure.
ETH ETF Decision Approaching
On the same day as the FIT21 vote, the SEC will make a decision on the Ethereum ETF for Ark Invest and VanEck. Many political signals and public comments from issuers lead many to believe it will be rejected.
This week offers three opportunities for the Biden Administration to clarify its stance on crypto. This week could be a defining moment for crypto policy in the US as crypto becomes an increasingly important topic for many young Americans. As Hammond noted, “This bull run is not about memecoins, it is about policy gains.”
*This is not investment advice.
