What's up, my people! 🔥 Get comfortable because things in the Capitol are heating up. It's only the "Cryptocurrency Week" in the House of Representatives and already the drama is unfolding. It turns out that the folks from the Rules Committee took a look at three bills that have everyone glued to the show. The issue is that a key motion didn't pass the cut, and 13 Republicans flipped, voting with the Democrats. That's huge!
The biggest mess is the GENIUS Law, the one about stablecoins, which the Senate had already approved. The curious thing is that, although American issuers like Circle are totally in favor (even asking for a national trust bank, can you imagine!), there is some resistance. What's the deal? Some Democrats are saying that the law doesn't prevent none other than Trump and his family from benefiting from a stablecoin called USD1, issued by World Liberty Financial. Representative French Hill says that Trump is not the issuer, but the owner of the company that issued it. Is that so? 🤷♂️ And not to mention that some think the law is too weak against money laundering. On the other hand, for the folks at Tether, things are getting tougher because now they will be required to audit their finances, something they haven't done completely.
Next is the CLARITY Law, which is like a manual to differentiate between what is a digital commodity and what is not, and to see who regulates what between the SEC and the CFTC. The thing is that it's a very dense and controversial text. The key is in the definition of decentralization. If a blockchain is "sufficiently decentralized", it is a commodity. Who the hell decides that? The move is crucial to know who will be breathing down whose neck in the market.
And to top it off, the Anti-CBDC Surveillance Law. This is the most direct: it puts a brake on the Federal Reserve so that it cannot issue a centralized digital currency. Those who defend it say it is for privacy, so that the government doesn't poke its nose into people's pockets. But those who oppose it, like Democrat Stephen Lynch, say the law is a "colossal stupidity" and that it leaves them behind in the global race.
The truth is that every law is a piece on a giant chessboard. What is decided here will pave the way for the future of cryptocurrencies in the largest country in the world. We must be alert to the next moves because the drama is just beginning. 💥$BTC $ETH $YFI
