Crypto Industry Prepares for Critical Decisions: A Preview of Next Week’s Top 3 Crypto Events
Next week in Washington, D.C., there are three major events that are set to take place, and they hold great significance for the crypto industry in the United States. Let’s take a closer look at each of these events:
1. Biden’s Potential Veto of the SAB 121 Repeal:
Recently, the Senate passed H.J. Res. 109, a resolution aimed at overturning the SEC’s Staff Accounting Bulletin No. 121 (SAB 121). This bulletin imposes restrictions on financial institutions in their role as custodians for digital assets. Surprisingly, there was a rare bipartisan agreement in the Senate, resulting in a 60-38 vote in favor of the bill. However, President Biden, who seems to lean towards Senator Warren and SEC Chair Gensler, has threatened to veto the resolution if it reaches his desk. With approximately nine days left for Biden to make a decision, his choice will have a significant impact on the SEC’s control over the crypto industry. Senator Cynthia Lummis, a strong supporter of the bill, argued during the voting process that “SAB 121 is a rule disguised as accounting guidance under the Administrative Procedure Act. The SEC staff published it without the majority of the commission’s approval.” Proponents of the bill believe that regulated financial firms have the necessary capabilities to handle digital asset custody, and getting rid of this rule would help reduce centralization risks.
2. SEC’s Decision on Ethereum ETF:
The SEC is expected to announce its decision on VanEck’s application for a spot Ethereum ETF by Thursday. While many believe that SEC Chair Gary Gensler will reject the application, there is mounting political pressure. The Democratic Party is concerned that taking an anti-crypto stance could negatively impact their chances in the upcoming elections. Due to the lack of communication from the SEC, Jan van Eck, the CEO of VanEck, expressed skepticism about the approval, stating, “I would be surprised if the SEC approves it at this point.”
3. House Vote on the FIT21 Bill:
The Financial Innovation and Technology for the 21st Century Act (FIT21) is scheduled for a vote in the House by Wednesday or Thursday. This crucial legislation aims to provide clarity on the regulatory responsibilities of the SEC and the CFTC regarding digital assets. The bill has gained significant support from the pro-crypto faction in Congress, and a letter from the Crypto Council for Innovation, signed by companies like Coinbase and Circle, has urged lawmakers to pass the bill. The letter states, “Regulatory clarity is unquestionably more responsible, safer for consumers, and preferable to the current situation.”
These three events have captured the attention of the entire crypto industry, as decisions made by President Biden, the SEC, and the House of Representatives will have a profound impact on the regulatory landscape for cryptocurrencies.