The U.S. Congress is discussing the regulation of the cryptocurrency market from multiple angles: protecting investors, combating financial crimes, ensuring innovation without stifling startups, and integrating digital assets into the traditional financial system.

🔹 Key Topics:

1️⃣ Regulation of Exchanges and Platforms:

Congress is debating who should oversee the cryptocurrency market: the Securities and Exchange Commission (SEC) or the Commodity Futures Trading Commission (CFTC).

There are sharp disagreements among Congress members about whether currencies like Bitcoin should be treated as commodities or securities.

2️⃣ Taxes and Disclosure:

Laws have been proposed to require platforms to report user data to the Internal Revenue Service (IRS).

The discussion revolves around how to report profits and losses from cryptocurrency trading.

3️⃣ Combating Crimes and Money Laundering:

Strengthening “Know Your Customer” (KYC) and “Anti-Money Laundering” (AML) laws.

Concerns about the use of stablecoins and anonymous cryptocurrencies to fund illegal activities.

4️⃣ Stablecoins:

Congress is discussing legislation to regulate stablecoins (like USDT and USDC) and ensure there are sufficient cash reserves to back them.

5️⃣ Digital Dollar (CBDC):

There are hearings on the idea of launching a digital dollar backed by the Federal Reserve as an alternative or competitor to stablecoins.

Some lawmakers see it as necessary to compete with the Chinese digital yuan.