The cryptocurrency market may be on the cusp of a major rally as US politicians prepare for the upcoming crypto week, which will be the first one of its kind. If successful, Bitcoin and other cryptocurrencies could jump as the market embraces regulatory clarity in the industry.
Top bills to be considered during the crypto week
The US House of Representatives and the Senate will consider three key bills that could have a major impact on the crypto industry.
First, there is the Guiding and Establishing National Innovation for US Stablecoins, also known as the GENIUS ACT. This bill has already passed in the Senate and is scheduled for deliberation in the House.
It has gained significant popularity by focusing on the growing stablecoin industry, which is currently valued at over $250 billion. The bill sets the parameters to ensure the safety of customer funds.
For example, it ensures that all funds in these stablecoins are backed by liquid assets like the US dollar and short-term treasury bills. It also maintains monthly reserve disclosures and annual audits.
Additional provisions include allowing state supervision of certain tokens, while companies are required to ensure compliance with AML laws.
The bill will have some winners and losers when passed. The biggest loser will be Tether, a company that is working on establishing its headquarters in El Salvador.
As things stands, Tether does not meet all the conditions in the GENIUS Act since its reserves are in a combination of assets like the US dollar and other assets like gold.
Tether has hinted that it will create a new regulated stablecoin focused on the US market. The top beneficiaries for the stablecoin are PayPal and Ripple, which launched regulated stablecoins like PYUSD and RLUSD.
Digital Asset Market Clarity Act (CLARITY)
The CLARITY Act is another major bill that will be in the spotlight during the crypto week. This bill seeks to address one of the biggest issues in the industry in the past few years: jurisdiction.
It specifically makes it clear who should regulate the crypto industry between the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC).
The proposal is that most crypto exchanges should register with the CFTC. It also establishes rules for disclosure, recordkeeping, and customer asset segregation.
This bill has already passed in the House Financial Services and Agricultural Committees. It now needs to pass in the House of Representatives and in th Senate. Democrats have criticized the bill because of Donald Trump’s crypto ventures.
Anti-CBC Surveillance State Act
The other notable bill to be considered is the Anti-CBDC Surveillance Act, which prohibits the Fed from testing, developing, creating, and issuing a central bank digital currency. It also prevents the bank from offering financial services to individuals itself.
Republicans and some Democrats argue that CBCs will promote surveillance by the state. They also argue that the party in power may use CBDCs to spy on the opposition. This bill has passed the House Financial Services Committee and is yet to get the full floor vote.
Remember the Infrastructure Week?
The main risk with the upcoming Crypto Week is that it may turned into another “Infrastructure Week”, which happened in Trump’s first term. Trump aimed to use the infrastructure weeks to pass his $1 trillion agenda, which failed.
It became synonymous with unfulfile promises in that administration. As such, there is a risk that some of these crypto bills will not pass in the House and the Senate.
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