A new piece of key legislation for blockchain and crypto, the Blockchain Promotion Act, has won approval from the U.S. Senate Committee of Commerce, Science and Transportation moving it through the pipeline, as reported yesterday.
The law will establish a blockchain working group in the Department of Commerce that will continue to look at how to regulate blockchain programs and crypto assets.
July is also the time for a separate hearing on Facebook Libra, the proposed cryptocurrency that would merge blockchain with the enormous social media platform, in the United States House Financial Services Committee.
According to many industry insiders, this type of legislation is a major plank in the platform of advancing blockchain and crypto interests. The market, they say, deeply needs positive regulation – more concrete ways to handle digital coins and other fintech advances.
However, in the executive branch, President Trump is making news for tweets showing opposition to both Libra and Bitcoin, as written:
“I am not a fan of Bitcoin and other Cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air. Unregulated Crypto Assets can facilitate unlawful behavior, including drug trade and other illegal activity….”
Trump also slams Libra:
“Similarly, Facebook Libra’s “virtual currency” will have little standing or dependability. If Facebook and other companies want to become a bank, they must seek a new Banking Charter and become subject to all Banking Regulations, just like other Banks,…”
Of course commenters are piling on and yelling: “fake news!”
What’s clear, though, is that there is a worldwide push to make blockchain and crypto rules more concrete, regardless of how central banks and world leaders feel about the viability of these programs to replace fiat currencies.
We’ll keep reporting on incremental advances and policy decisions, so that investors can have a good road map for managing their portfolios in relation to crypto assets. When it comes to the value of something like Bitcoin, regulation matters, and so having up-to-date information on the regulatory landscape is a big value.