The White House and Congress
The White House has expressed a desire to work with Congress to establish a robust and balanced regulatory framework for digital assets. This initiative responds to the Financial Innovation and Technology Act 21 (FIT 21). This legislation aims to establish clear guidelines for the classification, trading, and regulation of digital assets to address existing regulatory ambiguities. These uncertainties have reportedly led companies to go overseas, limiting innovation and economic opportunities in the United States.
The Biden administration and FIT 21
However, the Biden administration is currently opposed to FIT 21 in its current form, arguing that it does not provide sufficient protections for consumers and investors in the digital asset market. Despite this opposition, the administration has indicated that it will not veto the bill, unlike its stance on a previous cryptocurrency-related bill. Since FIT 21 is expected to pass in the House of Representatives, it will subsequently go to a vote in the Senate.
Developments in the regulation of cryptocurrencies
The decision to engage more constructively with cryptocurrency regulation comes at a time when President Joe Biden's political rival, Donald Trump, is increasingly showing support for Bitcoin and using it for campaign financing. This has apparently influenced a more open approach by the Biden administration towards digital assets, moving away from previous reservations and towards promoting an environment that favors responsible development and innovation in digital finance, in line with the US interest in global financial leadership.
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