US Congress Will Not Pass Cryptocurrency Legislation Anytime Soon, Says Lawmaker
Cryptocurrencies have existed for a relatively short time, and we have already seen a lot of large developments in their legal status over the past few years. In 2013, the US Treasury Department’s Financial Crimes Enforcement Network (FinCEN) released guidance stating that “virtual currency does not have legal tender status” in any jurisdiction. In 2014, banks in the US began to accept cryptocurrencies as deposits and in 2015, the IRS (Internal Revenue Service) declared that cryptocurrencies are to be treated as property, rather than as currency.
Despite some uncertainty about how the US government will regulate cryptocurrencies and many businesses in the crypotcurrency space, cryptocurrency regulation is not the top priority of many US lawmakers. The US will not pass crypto-related legislation anytime soon, says Representative Tom Emmer, a Minnesota Republican who co-chairs the bipartisan Congressional Blockchain Caucus. Blog: “US Congress Will Not Pass Cryptocurrency Legislation Anytime Soon, Says Lawmaker” (Cryptocurrency)
The US Congress has no plans to pass cryptocurrency legislation anytime soon, says a lawmaker who has been at the center of the legislative debate surrounding the technology. On March 5, Carolyn Maloney, the Democratic representative for the state of New York, said that the legislature would not be taking up any cryptocurrency-related bills in the near future. (…more to come soon). Read more about cryptocurrency act of 2020 and let us know what you think.
US Congressman Jim Himes says Congress is not ready to pass legislation on cryptocurrencies anytime soon because lawmakers do not fully understand cryptocurrencies. There will be a lot of discussion in the coming years about how cryptocurrencies should be regulated, the congressman said.
Legislation on crypto-currencies not expected in Congress soon
U.S. Rep. Jim Himes discussed some of the congressional discussions on crypto-currency legislation in an interview with Yahoo Finance on Friday. The Connecticut Congressman chairs the Subcommittee on National Security, International Development and Monetary Policy of the House Committee on Financial Services. Prior to that, he worked for 12 years at the investment bank Goldman Sachs. His comments on cryptocurrencies came as the U.S. Treasury Department released a proposal requiring companies to report transactions involving cryptocurrencies over $10,000 to the Internal Revenue Service (IRS). Himes said Congress is not ready to pass legislation on crypto-currency anytime soon. Most of my colleagues don’t have a deep understanding of cryptocurrencies, what they can do and the dangers they pose, he said, noting that Congress hasn’t spent much time on the topic. The legislature has clarified it: So the US Congress, for better or worse, is not likely to pass a law along those lines. More and more of my colleagues are realizing this, he continued. There is also a senator in Congress who supports bitcoin, Cynthia Lummis, who has promised to show her colleagues in Congress that bitcoin is an excellent store of value. She also plans to convince Treasury Secretary Janet Yellen to do the same. Congressman Himes then described the atmosphere in Congress surrounding the crypto currency debate, citing a recent New York Times article by Nobel Prize winner Paul Krugman that he believes characterizes it quite well. Himes said: Innovative ideas, it is interesting to know what they actually do, what problem they solve. He stressed that the benefits to drug dealers, people smugglers [and] potential terrorists are very clear to him, and repeated Tell me what the other benefits are. The member noted: It’s kind of a general vibe in Congress when people talk: Tell me again what’s good about cryptocurrencies, what problem they solve. But Himes noted: Don’t get me wrong, this doesn’t mean there is an attempt to ban. He expects there to be a lot of discussion in the coming years about how to regulate, tax, etc. – about anything that crosses government with something like crypto currency. In a broader context, the infusion of cryptocurrencies, the Gamestop bubble, Robinhood, SPACs, I could list 12 things that I think are largely a function, not of deep fundamental investment research, but largely of a huge amount of liquidity, he added, noting: I don’t know if these things should be regulated. I’m not saying that. But it’s clear to me that there are a lot of people who believe that trees grow to the sky, and they’re going to get a very expensive education on what the downside of volatility is when we see a bear market or some kind of asset price depression. A lot of people will get a very expensive education if that happens, the congressman warned. What do you think of Congressman Himes’ statements on cryptocurrencies? Let us know your comments in the section below.
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bitcoin congress, jim himes, jim himes bitcoin, jim himes cryptocurrency, jim himes cryptocurrency, united states congressman, cryptocurrency regulation in the united states, cryptocurrency regulation in the united states, united states law, united states legislature, united states representative Photo credit: Shutterstock, Pixabay, Wiki Commons Denial: This article is for information only. It is not a direct offer or invitation to buy or sell, nor is it a recommendation or endorsement of any goods, services or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author shall be liable, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services referred to in this article.The US Congress has not been able to pass cryptocurrency legislation anytime soon, according to a top lawmaker. “I just don’t think this is going anywhere this year,” Representative Brad Sherman (D – CA), who is also a member of the House Financial Services Committee, told Bloomberg in an interview published June 18. “There are people who will send bitcoins to their relatives in Russia or China or Venezuela and bypass the sanctions,” Sherman continued. “You can’t allow that.”. Read more about digital currency bill, 2021 and let us know what you think.
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