The regulation of Bitcoin in the United States is undergoing significant changes. Below, I present some key details about current and future regulation:
*FIT21 Act*
- The U.S. House of Representatives passed the Financial Innovation and Technology for the 21st Century Act (FIT21 Act), which seeks to regulate the Bitcoin and cryptocurrency ecosystem in the country.
- The law establishes a regulatory framework for the cryptocurrency market, prioritizing consumer protection and defining what makes a cryptocurrency a security or commodity.
- The Commodity Futures Trading Commission (CFTC) would be the main regulatory body for digital assets ¹.
*Strategic Bitcoin Reserve*
- Senator Cynthia Lummis introduced a bill to create a strategic Bitcoin reserve, which involves purchasing 1 million Bitcoins over five years.
- This reserve could provide additional legitimacy to Bitcoin in traditional financial markets and reduce volatility.
- The project is backed by elected President Donald Trump
*Regulation in different states*
- Some states like Arizona, Utah, Ohio, Alabama, and Texas are considering legislation on Bitcoin reserves, which could reshape the landscape of digital assets.
- These states seek to diversify their portfolios and attract crypto companies, but also face regulatory challenges and risks associated with Bitcoin's volatility ³.
*Market Impact*
- Clear and favorable regulation could attract institutional investors and governments, increasing confidence in Bitcoin adoption.
- The price of Bitcoin has surpassed $109,000, marking a five-month high, thanks to global trade easing and legislative progress on regulation in the U.S. Senate.