The entire cryptocurrency industry is waking up to a new reality. Politicians and regulators have decided to wade into the space, which had flown mainly under their radar until now. A House committee chair is launching a working group; the Securities and Exchange Commission is seeking new authorities to regulate digital assets as securities; and the Senate-passed infrastructure bill includes $28 billion in tax revenues from crypto transactions. This last handful of weeks has arguably seen more regulatory activity around digital currencies since the name Satoshi Nakamoto first entered the popular lexicon. Anyone whose business deals in this asset class …

In recent weeks, the blockchain industry made headlines as it engaged in intense discussions with lawmakers after a $28 billion crypto tax reporting proposal unexpectedly became part of the Bipartisan Infrastructure Deal (BID). Ultimately, the BID language was unchanged, leaving uncertainty for the companies that build on blockchain, especially those dedicated to its value beyond cryptocurrency trading. Though unsuccessful in their bid to amend the language, many are claiming victory over the industry finding its voice in the negotiations. Now, it needs to use that voice to refocus the conversation on what really matters — the fact that blockchain technology …

The United States Congress appears to be pushing for greater regulatory clarity regarding crypto assets, having proposed 18 bills concerning blockchain and cryptocurrency so far in 2021. According to an analysis published by former Federal Deposit Insurance Corporation regulator Jason Brett, on Sunday, the current 117th Congress has broken from its predecessor in focusing on regulating decentralized assets rather than private stablecoins, such as Facebook’s Diem project — formerly called Libra. In July, Congress put forward the Digital Asset Market Structure and Investor Protection Act in a bid to create distinct statutory definitions for digital assets and digital asset securities. …

U.S. congressional representatives introduced a bipartisan bill on July 15 with the goal of providing a clear definition of assets, such as digital tokens and other emerging technologies, under current securities law. Known as the Security Clarity Act, the bill was introduced by Rep Tom Emmer (R-MN), Rep Darren Soto (D-FL), and Rep Ro Khanna (D-CA). This legislation seeks to change the definition of a term that has been used for more than 75 years. The status of any asset sold as an “investment contract” would become an “investment contract asset.” According to the release, this bill would provide a …

News of two contrasting approaches to crypto from U.S. members of congress surfaced this week. Alabama Rep. Barry Moore has been loading up on cryptocurrencies such as Ether (ETH), Cardano's ADA and Dogecoin (DOGE) over the past two months. Meanwhile, anti-crypto California Rep. Brad Sherman — whose stated aim is to shut crypto down — has reportedly received more than $100,000 in campaign donations from top financial firms. According to Friday's trading disclosures filed with the clerk of the House of Representatives, Moore purchased ETH on May 5, he bought ADA on May 10, 11, 13, and bought DOGE on …

Bill Foster, Democratic Representative and co-chair of the Congressional blockchain caucus, has called for a regulatory framework that would enable third parties to reverse fraudulent or criminal transactions. Foster is a physicist and a Democratic Rep for Illinois. The blockchain caucus is co-chaired by Democratic Rep Darren Soto, and Republican Reps Tom Emmer and David Schweikert. Speaking during an online event for news outlet Axios, Foster asserted that unless the Congress or the public can come up with a different solution to ransomware, U.S. regulators need to introduce a legal framework that can “unmask” crypto wallet holders’ identities and reverse …

A bipartisan bill that requires the study of blockchain technology and digital tokens passed the House of Representatives on June 22. The “Consumer Safety Technology Act'' is centered on consumer protection and includes digital token and blockchain research. The bill passed the 117th Congress within a week of its introduction, with a resounding 325 votes in favor of, and 103 votes against. This is not the first time this bill has reached this point however, and under the Trump administration, the bill passed the House in September 2020. It was then referred to the Committee on Commerce, Science, and Transportation …

The United States Securities and Exchange Commission is looking to cooperate with Congress and other regulators to increase its oversight of cryptocurrency exchanges. Gary Gensler, the newly appointed chairman of the SEC, said that the commission is looking forward to working with fellow regulators and Congress to fill gaps in investor protection in crypto markets. The official announced the plans at a Wednesday hearing before the Financial Services and General Government subcommittee of the House of Representatives. Gensler said that the SEC needs to provide similar protections for crypto exchanges that an investor would get on the New York Stock …

Major Wall Street bank executives will appear before the United States Senate Banking Committee on Wednesday to discuss the role of their financial institutions in the recovery of the American economy. Democratic lawmakers plan to grill a number of major bank execs, whose firms saw record profits during the COVID-19 pandemic while average Americans struggled to make ends meet. In prepared testimonies posted on Tuesday, CEOs at the Bank of America, Citigroup and Wells Fargo described their respective banks' responses to major challenges such as inequality, diversity, climate change, taxes, as well as how their banks handle cryptocurrencies. This year …

Minnesota Rep. Tom Emmer has reintroduced a bill aimed at preventing the IRS from imposing penalties or fees on crypto taxpayers with forked assets. In an announcement from Emmer on Monday, the congressperson from Minnesota said he had once again introduced the Safe Harbor for Taxpayers with Forked Assets bill in the United States House of Representatives. If passed in its current state, the bill would create a safe harbor for crypto holders with forked assets, allowing them to be nontaxable events. Further, these conditions would be continued until the Internal Revenue Service provides “clear and consistent guidance on how …

Government and industry have teamed up to fight a major increase in ransomware, with a newly formed ransomware task force calling for new measures to more aggressively trace Bitcoin and crypto capital flows. The task force includes law enforcement including FBI and U.S. Secret Service agents working alongside representatives of leading security and tech firms. According to an April 29 report from Reuters citing anonymous sources from the Department of Justice’s task force, the group is calling for new guidelines designed to cut through the anonymity of digital asset transfers that will soon be reviewed by Congress. The proposed measures …

The United States House of Representatives on Tuesday passed H.R. 1602 — the Eliminate Barriers to Innovation Act — introduced by Rep. Patrick McHenry (R-NC). H.R. 1602 was among six bipartisan financial services-related bills passed by the House on Tuesday, with the McHenry-sponsored legislation focusing on regulatory clarity for cryptocurrencies. Introduced back in March, the bill seeks to clarify the roles of agencies like the Securities and Exchange Commission and the Commodity Futures Trading Commission in the policing of cryptocurrencies in the United States. The bill also seeks to answer the ongoing debate of whether crypto tokens are securities or …