The Ultimate Guide to. Crypto Regulation. In the U.S.
and also pro crypto politicians. In 2023.
Let's get started.
So after the countless blow ups, scams and rug pulls of.
2022.
2023 will be the year of.
Crypto. Regulation. In the. U.S..
This video puts together the ultimate guide that.
Covers the most important pro crypto and anti crypto.
Politicians in the U.S..
An overview of the.
Most important crypto bills Congress will. Pass soon.
An analysis of the White House. Stances. On crypto.
And also there's a lot of info in this guide, so.
Here's a TLDR in advance.
There is support for crypto from both.
Parties, but the most.
Vocal supporters are Republicans.
No fewer than five different.
Crypto bills are currently in Congress.
Addressing everything from taxation. Over.
Stablecoins to DeFi.
Joe Biden's executive Order kicked off a flurry of reports.
But most of them actually contain only vague.
Recommendations. The report.
On the effects of crypto mining that drew criticism from the.
Bitcoin community.
So who are the top crypto and anti crypto.
Politicians in the US?
Crypto has become a topic that moves the needle.
For American. Politicians.
The industry is now big enough to influence the outcome.
Of elections.
And in some counties and states being pro.
Crypto matters.
The Crypto Action Network, a pro crypto.
Lobby group, has.
A scorecard rating Congress members on their crypto stance.
Here are.
A few of the biggest names in their positions.
On crypto.
So the first one for Pro crypto.
Ron DeSantis.
Florida is probably the most.
Pro crypto. State in the US.
Rivaled only by Texas and it's not a surprise
that the potential Republican nominee in.
2024 Ron DeSantis.
Commented favorably. On crypto, and earlier.
This year he said state agencies would look into how businesses could pay taxes.
In Bitcoin in Florida.
And there has.
Been no updates on that and DeSantis has not made any other explicitly.
Pro crypto. Comments.
But Florida, as a whole is definitely on team crypto.
Next up, Francis Suarez.
Miami Mayor Francis.
Suarez is the face of Florida's push.
To lure the industry to the. State.
And he also said that he is bullish on web3, which is not surprising considering
how many crypto in Bitcoin conferences Miami hosts.
The city also launched its own Miami coin MIA.
MIA has seen better days.
The Miami Heat used to play in the.
FTX arena, and Francis Suarez said that.
He considers himself somewhat of a crypto. Evangelist.
And that he likes Bitcoin because it disrupts.
Socialist regimes.
And he famously also takes his salary in bitcoin.
Suarez is sticking by his crypto guns even in the bear market.
He called.
Miami Coin a big success, even though the coin is down. Bad.
And the next one is Ted Cruz.
Texas Senator Ted.
Cruz is another outspoken. Bitcoin.
Proponent who clearly recognized how supporting Bitcoin.
Can be used for political gains.
He said he likes Bitcoin because it's decentralized, which is also why.
The left hates it. According to Cruz.
He also has come out as a proponent of mining.
Bitcoin. With flare gas.
Cruz also wants Texas to become a crypto oasis
and supports a bill against CBD sea use for retail.
Next up, Cynthia Lummis, Wyoming Senator Cynthia Lummis
is another well-known crypto advocate leading a pro crypto state.
She sponsors the Responsible Financial Innovation Act,
also known as the Lummis-Gillibrand bill.
It addresses Stablecoin regulation of banking, the tax
treatment of digital assets only interagency coordination in.
Purposes of crypto to be regulated.
As commodities.
Loomis said crypto needs. Clear rules, and.
She was praised.
By industry figures for her sensible approach.
and a politician that Can be trusted to get regulation right.
Eric Adams.
New York City Mayor Eric.
Adams has a bit of a friendly rival with.
Francis Suarez.
As the two mayors.
Battle. Out who the. Bigger crypto. Advocate.
Is, Adams said that he wants to make New York the crypto.
Capital of.
The US and he also wants to add. Crypto.
To the. School curriculum.
And Adams has also taken some paychecks in Bitcoin.
And next up is Patrick.
McHenry, Massari named North Carolina.
Republican Patrick McHenry as.
Someone with an outsized influence.
On crypto policy.
He is also set to lead the.
House Financial Services.
Committee and has. Already promoted.
And. Sponsored bills in.
Proposals establishing clear rules on stablecoins.
And token disclosures.
Massari sees him as one of the key figures to.
Watch in 20. 23.
The Congressional Blockchain Caucus is a bipartisan. Group.
Serving as a. Platform for industry and.
Government to study and understand. Blockchain technology.
One of its members, House Majority.
Whip elect Tom Emmer, has been another outspoken advocate of crypto.
He demanded an explanation from the FCC for the.
Tornado cash sanctions.
And also slammed the SEC for its industry sweeps against.
Crypto.
He also urged the.
Environment Protection Agency to consider the benefits of crypto mining,
and he also favors. A bipartisan approach.
To promoting cryptocurrency innovation and the Anti Crypto list with the first one.
Gary Gensler, the SEC chairman, is.
Crypto's favorite. Villain, a dubious honor that.
He won't get rid of anytime soon.
Considering his role in the.
FTX bankruptcy.
Gensler famously feuded even.
After the merger.
Saying that it could actually be a. Security now.
Bitcoin is the only cryptocurrency that Gensler acknowledges
as a commodity, although he is reportedly open to sharing.
Regulatory. Responsibilities with the CFTC.
Next up is Neel Kashkari.
Neel Kashkari is not a Congress member, but the.
Head of the Minneapolis. Federal Reserve.
He still made the list because of his interesting.
Stance on crypto and CBDCs Kashkari considers crypto.
To be nonsense and not useful. For payments.
But at the same time, he doesn't support CBDCs.
Next up, Elizabeth Warren.
Elizabeth Warren is another.
Proud crypto hater that.
Has not missed an opportunity to throw shade at the.
Sector.
She wants cryptocurrencies to be regulated as securities.
Called them toxic and also magic beans and maintains that.
Crypto will. Ruin the economy.
But she's. Also responsible for an all time great. Crypto.
Meme, the shadowy super.
Coder responsible for endangering.
This ability of the American financial system.
What are the most.
Important crypto regulation. Bills?
All right, so here's where things get a little bit complicated.
No fewer than six.
Different bills are floating around the Virtual Currency.
Tax Fairness Act,
the Stablecoin Transparency Act, the Digital Commodity Exchange Act, the.
Responsible.
Financial Innovation Act, the Digital.
Commodities Consumer Protection Act.
And the Digital Asset Anti-Money. Laundering Act.
So 2023, as the year. Of crypto regulation.
Was not a joke.
So let's go through. Them from simple to complex.
The Virtual Currency Tax Fairness Act, the Virtual Currency.
Tax Fairness Act, aims to provide.
A clearer framework for the taxation of crypto.
It would exempt gains of up to $200.
So in other words, it would make small.
Transactions tax free.
The bill is currently being.
Considered by the Senate Committee on Banking, Housing.
And Urban Affairs.
So the prognosis is not. Passing anytime soon.
Next up, the Stablecoin Transparency Act.
So the Stablecoin Transparency Act would, according to Coindesk address issues
such as how stablecoin.
Issuers. Can tap banking.
Services, what the reserves.
Must look like, whether they. Can engage in fractional.
Reserves, what sort of.
Licensing stablecoin. Issuers need.
What kind of. Consumer protections.
Must be baked in.
However, it is still stuck in the same.
Senate Committee on Banking, Housing and Urban.
Affairs, Purgatory.
As the tax bill.
So the prognosis is not passing anytime.
Soon, but still more likely to pass than.
Tax free crypto taxation.
Next up, the Digital Commodity Exchange Act.
So the Digital Commodity Exchange Act.
Would regulate cryptocurrency developers, dealers.
Exchanges and stablecoin. Providers, and.
Also give the CFTC the.
Authority to determine rules for cryptocurrency developers and.
Exchanges. Offering spot trading.
However, it was introduced in April 2022 and hasn't moved since,
so the prognosis is keep waiting.
Next up, the responsible. Financial innovation Act.
The Responsible Financial Innovation Act aims to.
Clarify regulatory responsibilities.
Between the SEC And the CFTC.
It establishes the concept of.
Ancillary assets.
Which are tokens that are not. Securities.
But still fall.
Under the jurisdiction. Of the CFTC.
Unless they can be shown to be. Securities.
So the Act also suggests that ancillary assets
that are not sufficiently decentralized will need to file twice.
Yearly disclosures to. The SEC.
And also this bill has at least had several hearings
and also may have a better. Chance of being passed.
Especially after what happened with FTX.
So the prognosis, while it could happen, hang in there.
And next up, we have the digital commodities, consumer.
Protection. Act is the big one and the one with.
The most scandals attached to it.
It was. Famously supported.
By Sam. Bankman-fried, which earned him a.
Lot of flack on. Crypto. Twitter. But as we know now.
Everything was much. Worse than it appeared.
The DCCPA would give the CFTC.
Authority to regulate.
Crypto. Assets that are considered.
Commodities, such as Bitcoin and Ethereum.
But it would not clarify whether new tokens should be classified
as a commodity. Or a security.
The crypto industry also criticized support for this.
Bill because it would inhibit DeFi.
Innovation by making DeFi platforms hold.
Customer. Property, designate.
Compliance.
Officers and also grant platforms, emergency powers.
To intervene in trading.
None of that would be possible for DeFi platforms
and also why SBF supported the bill is a secret.
That may or may not see the light of day.
However, considering how events unfolded, the bill is still stuck
in its introduction.
Phase would most likely be considered in one.
Way or another.
So the.
Prognosis is something will.
Happen in 2023 yet to be seen.
Next up, the Digital. Asset Anti-Money. Laundering Act.
The latest edition is Elizabeth Warren's bill that would introduce KYC rules
to wallet providers
and prohibit financial institutions from interacting with coin mixers.
The bill is so recent that it's not even on the website of Congress yet.
Therefore, a prognosis is impossible at this point.
Overall, regulators.
In the US have faced a public anger following the.
Collapse of FTX.
Experts are calling for a better coordination
between regulatory bodies, and there are. Questions.
Over the. Credibility of. U.S. regulators.
The crypto regulation.
Can has been kicked down the road one too many times,
but now something will have to happen.
In 20 23.
And that's going to be interesting to see.
So what does the White House think about crypto?
In March of 2022, Joe Biden released an executive.
Order to establish the first ever comprehensive.
Federal digital Asset Strategy for the United States.
He ordered several.
Departments to write research reports to.
Get the White House up to speed on the latest in the.
Crypto industry.
The executive order. Outlined six key.
Priorities consumer and.
Investor protection, promotion of financial.
Stability, countering illicit finance, leadership in the global
financial system, financial inclusion, responsible innovation.
Nine reports have been.
Released since, with one addressing the relationship.
Between the Fed any possible CBDC and one about Regulatory gaps.
Still to come. And most. Of the reports are.
Fairly vague, indicating the administration is still mapping
the crypto landscape and trying to understand what's what.
But we do have a few indicators of what the next steps will be based on a fact.
Sheet released by. The White House.
The White House on protecting consumers.
Investors and businesses. Regulators should.
Aggressively pursue. Investigations.
And enforcement.
Actions against.
Unlawful practices in lead digital asset space.
Monitor consumer complaints.
And to enforce against unfair, deceptive.
Or abusive practices.
Collaborate and share data on consumer complaints.
Lead public.
Awareness efforts to help consumers understand the risk.
Involved with digital assets.
Nothing really tangible.
Overall, the White House on promoting.
Access to safe, affordable financial.
Services encourage the development.
And use of innovative technologies by payment providers
and instant payment systems for. Their own transactions.
Create a federal framework to regulate.
Non-bank payment.
Providers.
Align global payments, practices, regulations.
And supervision protocols. While exploring new.
Multilateral platforms.
Research to ensure.
That digital asset ecosystems are designed to be usable, inclusive.
Equitable and also accessible.
Again, a lot of recommendations, but nothing immediately actionable.
The White House on advancing responsible innovation develop a digital.
Assets, research and.
Development agenda, provide innovative U.S.
firms developing new financials, technologies and.
Regulatory guidance.
Best practices, sharing and technical assistance, track
digital assets, environmental impacts, developing performance.
Standards as appropriate, and providing local authorities.
With the tools, resources and expertise.
Establish a standard forum to convene federal agencies, industry, academics,
and civil.
Society to exchange knowledge and ideas.
For many of these points that government agencies may want to.
Follow industry leads.
Not vice versa.
The White House on Reinforcing global.
Financial leadership and competitiveness.
Leverage U.S.
positions in. International organizations.
To message U.S..
Values related to digital assets.
Increase collaboration with and assistance to.
Partner. Agencies to. Foreign countries.
Explore further technical assistance to developing countries.
Building out digital asset.
Infrastructure and services.
Help cutting edge U.S.
financial technology and digital asset firms find a foothold in.
Global markets for the products.
This is one of the most interesting sections.
The report implies.
That the U.S.
will use its power to existing institutions to.
Push crypto.
And U.S..
Crypto firms where it suits and national interests.
Next up. The White House on fighting. Illicit finance.
Congress might amend the Bank Secrecy Act or BSA and laws
against unlicensed money transmitting to apply explicitly to digital assets.
Services providers and raise the penalties for unlicensed.
Money transmitting continue.
To. Monitor. The development of digital.
Assets sector and.
Also its associate added illicit financial.
Risks. The Treasury. Will complete an illicit finance. Risk.
Assessment on decentralized finance.
The Treasury will enhance a dialog with.
The private. Sector. Some more interesting statements here.
DeFi will get scrutinized and the government plans to put the.
Screws on AML even. More.
The White House on exploring a CBDC
see the administration has developed a policy objectives.
For a U.S. CBDC system.
An interagency working group, to consider.
The potential implications of a U.S.
CBDC to leverage across governmental.
Technical. Expertise. And also.
Share information with partners.
In other words, the White. House is.
Looking into CBDCs and How it could be useful but hasn't made a final.
Call yet.
Coinmetrics Co-Founder and Bitcoiner, Nick Carter.
Published an extensive essay criticizing the White.
House report. On crypto mining.
He called the. Overall effort of the report.
Weak and effectively a.
Literature review that.
Was put together from mostly anti proof. Of work sources.
His main.
Criticisms were the report presents virtually.
No new data.
It ignores contributions of industry.
Subject matter experts.
It relies on partizan sources, but.
Calls for caution. On data.
So hypocrites it takes a moralistic stance against the mining and applies
unnecessarily.
High standard miners shall meet.
Its recommendations are useless and counterproductive.
Carter did praise the report in.
That it acknowledges the possibility of mining with stranded energy and bitcoin's.
Contributions to greater flexibility.
Overall, though, it does a better job of.
Assessing the mining industry.
So far, the jury is.
Still out on whether crypto regulation in the US will be sensible.
There is a lot of interest and also demand for it.
So 2023 should be the biggest.
Year for crypto regulation. Yet.
So it's time to hold. Public representatives.
Accountable and also push for sensible.
Regulation. Anyways, guys. That's all we have for this video.
We'll see in the next one.