Unresolved Crypto Regulations at Forefront as 2024 U.S. Elections Approach
Summary:
The legislative ambiguity surrounding digital assets, including stablecoins, remains unsettled as the 2024 U.S. elections approach. Consensys senior counsel, Bill Hughes, said a significant policy obstacle needs resolution for lawmakers to effectively regulate stablecoins. He criticised Senator Elizabeth Warren's crypto bill aiming to curtail illegal digital asset usage but appreciated the Clarity for Payment Stablecoins Act as being more sensible. Hughes noted how crypto had become a political issue in Washington D.C., with varying views on its potential risks and expansion. Expectations for approval of a spot Bitcoin exchange-traded fund (ETF) also exist, despite the possibility of continued delay by the regulatory authority.
The clarity of legal restrictions surrounding digital assets, including stablecoins, remains uncertain, despite continued debates leading up to the 2024 U.S. elections. In conversation with Cointelegraph at the North American Blockchain Summit on November 16, Consensys senior counsel and director of international regulatory affairs, Bill Hughes, cited this as a stimulating period in the legislative field, with Congress deciding on cryptocurrency bills to endorse. Hughes suggested the regulatory approach to stablecoins should be straightforward to lawmakers once state-level regulatory conflicts are resolved, emphasising that stablecoins occupy a significant position in the cryptocurrency space, and are seen as a prime example of blockchain technology application. However, he says one policy obstacle is hindering improvement.
Hughes criticised the crypto bill proposed by Senator Elizabeth Warren of Massachusetts, targeting the criminal usage of digital assets. Despite having public backing, Hughes deemed it inadequate in dealing with Anti-Money Laundering. On the other hand, he found the Clarity for Payment Stablecoins Act, brought forward by the chairman of the House Financial Services Committee, Patrick McHenry, to be generally sensible.
Hughes pointed out that cryptocurrency has turned into a matter of political dispute in Washington D.C.. While some are overtly antagonistic, others consider it a promising area that should be allowed to expand, aware of the potential risks which may require federal policy.
You can find Hughes' post about the issue on his twitter account: @BillHughesDC, "The legislation she proposes does nothing to solve the problem she claims it solves. Literally nothing. DOJs settlement today does help, however. https://t.co/IkcFIAygLO — Bill Hughes : wchughes.eth (@BillHughesDC) November 22, 2023."
Hughes also speculated that the U.S. Securities and Exchange Commission might approve a spot Bitcoin (BTC) exchange-traded fund or ETF, but didn't dismiss the possibility of further delays by the regulatory body: "It wouldn't surprise me if the Bitcoin ETF was finally allowed to move forward [...] there's a significant supply demand for it [...] The current defense for not having one is contradicting."
Vivek Ramaswamy, a Republican, and Robert F. Kennedy Jr., an Independent, contenders of the 2024 presidential elections who attended the North American Blockchain Summit, showed their support for numerous crypto-related policies. These issues, however, have not been given major attention at Republican Party debates. Hughes stated crypto issues were somewhat unconventional within the political landscape and were more likely worded within candidates' stances on broader issues like financial autonomy and government dimensions.
Published At
11/23/2023 5:10:48 PM
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