Cryptocurrency on the legal threshold: Important changes in the U.S. Congress
The cryptocurrency market, known for its volatility and lack of regulation, is facing a historic turning point in the United States. The House of Representatives has just passed three important bills, promising to reshape the legal landscape for this trillion-dollar industry. For the financial and economic sectors, these are signals that cannot be ignored.
Three new legal pillars: Shaping the future of cryptocurrency
* GENIUS Act (Stablecoin Regulation):
This is perhaps the bill that has received the highest consensus. After being approved by the Senate with bipartisan support, this bill is now awaiting the President's signature. The main goal is to establish a consumer protection framework for stablecoins—cryptocurrencies pegged to a stable asset, often the U.S. dollar. This not only brings transparency but also paves the way for traditional financial institutions to engage more deeply in this market.
* Clarity Act (Market Structure Package):
This bill has larger ambitions, aiming to create a comprehensive framework for regulating cryptocurrencies beyond stablecoins. Currently moving to the Senate, the Clarity Act is expected to clarify the roles and powers of regulatory bodies such as the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). Clarity of authority is a key factor in minimizing legal risks and encouraging innovation.
* Anti-CBDC Surveillance Act:
This bill reflects concerns about privacy and government control, seeking to prevent the Federal Reserve from developing a central bank digital currency (CBDC). The future of CBDC in the U.S. remains uncertain, but this move indicates lawmakers' caution regarding systemic changes.
Market reactions and capital flow shifts
Right after the bills were passed, the cryptocurrency market reacted notably. Bitcoin fell slightly, while Ether and Solana saw price increases. In particular, Ether ETF funds had a record week for inflows, surpassing Bitcoin ETF funds for the first time. This indicates a shift in capital flows and a growing interest in digital assets beyond Bitcoin.
Notably, traditional finance giants like JPMorgan Chase, Citigroup, and Bank of America have expressed a clear interest in the stablecoin space. Charles Schwab even plans to offer Bitcoin and Ether products to its customers, meeting the growing demand for cryptocurrency asset management alongside traditional assets. The participation of these institutions not only lends legitimacy but also opens the door for larger capital inflows into the market.
Challenges and prospects ahead
Although these bills represent an important step forward, significant challenges remain. Ryan Peters, Assistant Professor at Tulane University's Freeman School of Business, points out that the GENIUS Act, while good, still has gaps that need to be filled, particularly regarding insurance fund requirements and the need for more transparent disclosures about the reserves of stablecoins.
Additionally, the growing influence of the cryptocurrency industry on Washington through political contributions and lobbying is also a factor that the financial and economic sectors need to monitor closely. This could impact the policy-making process and the balance of power in the future.
In summary, the legal developments in the United States are creating a stronger foundation for the growth of cryptocurrency. For investors, analysts, and economists, understanding these bills and their impacts is essential for making informed decisions in an ever-changing market.
#GENIUSAct #AltcoinBreakout #ETHBreakout3.5k $ETH
