Governments around the world are Introducing new laws specifically Addressing crypto some for better some For worse but at least everyone knows What the rules are meanwhile the US Government has been derel without a rule Book crypto has been left to wander Around in the dark getting mugged by Shady Securities Regulators it's a Policy of evasion and it's not working Congress Can't Ignore crypto forever and Neither can they stamp it out this means It's only a matter of time before crypto Laws make it onto the books in the US so Today we take a look at some of the most Recent proposals How likely they are to Become law and what it all means for Crypto stay Tuned I'll start by reminding you of how Federal laws are passed in the United States but if you paid attention in School then feel free to use the Timestamps below to skip ahead anyway The US Congress consists of two Chambers The House of Representatives and the Senate proposed legislation also known As a bill can be written by anyone but For it to be considered by Congress it Has to be introduced by a member of Congress new bills can begin life in Either the house or the Senate after Being brought before the house or Senate A new bill will be scrutinized first by A subcomittee and then a committee of
Members who focus on a specific policy Area in this stage lawmakers can invite In or in some cases compel experts Advocates and opponents to appear and Provide testimony if both the Subcommittee and committee agree to move Forward with the bill it's reported to The chamber floor where the majority Party leadership schedules it for Consideration by the entire chamber this Stage is a little precarious for the Bill because if it's scheduled several Months down the line or in some cases Not at all this can affect ly kill it Anyway once the scheduled day comes the Bill is debated and often amended before Being voted on if the vote returns more Yays than Nays then the bill will be Sent to the other chamber where it goes Through more or less the same process From subcommittee to committee to Consideration by the whole chamber if Both chambers of Congress pass the bill With a simple majority then it's Submitted to the president to either be Signed into law or vetoed fun fact if The president doesn't act within 10 days The bill automatically becomes law Anyway that is the textbook version in Practice however it's not easy for Individual members of Congress to Introduce a new bill and have it Actually reach the president's desk There are countless hurdles that can
Block a bill from scheduling Shenanigans And filibusters to powerful opposition Lobbies this has led to some interesting Phenomena such as the C Christmas tree Mattera where there is a bill that has a Good chance of being passed by both the House and the Senate lawmakers will Often seek to decorate it with Amendments containing their own Legislative agenda which may have Nothing to do with the actual contents Of the bill okay that's the recap done Now let's take a look at what crypto Bills are making their way through the Congressional pipeline at the moment Block Vander chain house and that was a Brutal game of rugby you and the rest of The team must be hurting after that Defeat yeah yeah look it was so so tough Out there today you know everyone put Their bodies on the line everyone stood Up to be counted but yeah we're GED Not To Come Away with a win for sure for Sure so you came up against a very Physical side who were up for the battle All over the park did the fact that they Had the coin Bureau deals page behind Them count against you yeah yeah look For sure any side that has that sort of Firepower backing it up is always going To be hard to break down any team in the World is going to want the going be Deals page in its Locker for sure for Sure those 70% trading fee discounts and
$100,000 sign up bonuses they really Seem to make the difference in the Second half yeah yeah look I I'm not Going to lie Brew we could not compete On that level and when the other side Were able to deploy those massive Discounts on Hardware wallets then it Was pretty much pretty much game over at That point for sure yeah yeah now block Obviously everyone back home is going to Be hugely disappointed with today's Results is there any message you'd like To send to your fans yeah yeah look what Can I say but they should check out the Coin buau deals page you know you you Have to recognize quality when you see It so yeah hats off to them they made The difference out there today for sure For sure ways words to finish thanks Block yeah yeah all good BL yeah cheers Yeah so the first Bild that you should Be aware of is the Bitcoin Act of 2024 Ah music to my ears already this is the Short working time title of a draft Bill Introduced by Republican senator Cynthia Lumus of Wyoming now you'll remember That Donald Trump spoke at the Bitcoin Nashville conference in July during his Speech he pledged to treat the Government's BTC Holdings as a quote Strategic National Bitcoin stockpile but Notably while Trump promised not to sell The government's BTC Holdings he sto Short of pledging to have the treasury
Actively accumulate more however just a Few minutes after he left the stage Senator lumus appeared holding A draft Copy of the Bitcoin Act of 2024 anyone Left underwhelmed by Trump's pledge will Have been delighted because lum's Bill Proposes a federal government Bitcoin Purchase program under this program the Treasury would accumulate up to 1 Million BTC over 5 years this would Bring the government's Holdings to more Than 1.2 million BTC or 5.7% of of the Max Supply the bill would also prohibit The government from selling any BTC for A period of 20 years unless it's sold to Pay off the national debt lumus claims That the US will be quote debt-free Because of Bitcoin but this seems like Wishful thinking because the US national Debt is currently north of $35 Trillion so just for illustrative Purposes to repay this with Bitcoin the US Treasury would have to accumulate all 21 million BTC and then sell the entire Supply at $1.7 million per coin well you Have to admire the ambition anyway the Senator's Bill sits on a spectrum in Between Donald Trump's stockpile and the Strategic Reserve proposed by former Presidential candidate Robert F Kennedy Jr at the time of making this video Trump has not suggested that his Administration would buy any new Bitcoin Whereas RFK Jr has advocated
Accumulating a strategic reserve of 4 Million BTC and recently RFK Jr dropped Out of the race and announced his Support for Trump who has returned the Favor by inviting Kennedy to join his Transition team if he's elected as such It's quite possible that RFK JR could End up working in a second Trump Administration where he might advocate For a Bitcoin purchasing program more Ambitious than the one proposed by Senator lumus this is pure speculation Though at the moment lum's bill is the Only concrete proposal in Washington to Have the US government buy Bitcoin and To be honest we're not exactly sure how Concrete it is after all it is an Election year and members of Congress Have been known to introduce Eye-catching bills that have no chance Of becoming law just for the sake of Publicity we're not here to impune Senator ls' motives but Congress has Failed to pass crypto legislation far More vanilla than the Bitcoin act so it Does seem like a pretty long shot but on The other hand the Senate is unlikely to Consider the bill before this year's Elections the Senate is only narrowly Controlled by the Democratic party at The moment and it could well flip Republican in November if that happens Lumus predicts that the pro crypto Senator Tim Scott of South Carolina
Could become the chair of the Senate Banking Committee on which she also Currently sits and under these Conditions the Bitcoin act might really Have a shot at becoming law and by the Way if you're enjoying this video so far Drop us a like subscribe and ping that Bell button too you'll give this video a Boost and put yourself first in line for Our next upload now our next pending Crypto bill was also introduced by Senator lamus earlier this year but this Time in collaboration with New York Democratic party Senator Kirsten Gillibrand Who currently sits on the Senate agriculture committee their Bipartisan bill is is the lumus Gill Brand payment stablecoin act now if You're already getting Deja Vu I don't Blame you by our count this is the fifth Stable coin bill that has been Introduced to the house or Senate since 2020 others include the clarity for Payment stable coins Act of 2023 a very Similar Bill introduced to the house by Patrick McKenry the Republican chair of The house Financial Services committee Now the Lumis gilland Bill supersedes a Previous Bill introduced by the two Sen Senors in 2022 and then reintroduced in 2023 the responsible Financial Innovation act that bill like the fit 21 Passed in the house earlier this year Was an attempt at comprehensive crypto
Regulation that would likely struggle to Make it through the current Senate Stablecoin legislation has also failed On multiple occasions but it is still Being prioritized as the most viable First baby step towards regulating Crypto more broadly this is just because Stable coins are more palatable to Skeptical lawmakers than other Cryptocurrencies after all to support The issuance and use of US dollar stable Coins is to support the continued Dominance of the dollar worldwide Dollarization of the global economy may Be happening slowly but it is a real Phenomenon that is likely to continue as Such helping dollar stable coins keep Their lead seems like an easy win for Congress and that's not to mention the Material your benefit to the treasury That comes from issuers buying US Government debt to back their stable Coins so stable coin regulation makes a Pretty good gateway drug for congress But would it be good for stable coins Well let's see the lumus Gill brand Payment stablecoin act inherits many of The same Provisions from previous Stablecoin bills you can think of these Provisions as the stablecoin bill Starter pack for example issuers of US Dollar stable coins would be required to Hold onetoone reserves in cash or simly Liquid equivalents like short-term us
Treasury bills they would also be Required to file monthly attestations of Their reserves Implement anti-money Laundering provisions and comply with International sanctions imposed by the US government and its allies now this is All pretty standard Fair the bill also Prohibits algorithmic stable coins Entirely after the disastrous deeg and Collapse of terra's algorithmic us Stablecoin in 2022 this is also Unsurprising although it's worth Pointing out that the Bill's definition Of algorithmic stablecoins seems broad Enough to include novelty structures Like the die stablecoin which might Become a victim of the bill now payment Stablecoin is defined in the bill as a Crypto asset quote that is or is Designed to be used as a means of Payment or settlement and whose issuer Is obligated to redeem the asset for a Fixed amount of US dollars this is very Similar to the language used in Patrick Mchenry's House Bill and notably it Opens the door to crypto payments which Could be very bullish for payment Focused cryptos that means smart Contract cryptos as basically all stable Coins exist on Smart contract Cryptocurrencies like ethereum and Salana food for thought now lumison Gill Brand's bill is more distinctive when it Comes to who can issue stable coins and
How they will be regulated it was Specifically designed to preserve the US State and federal dual banking system And prevent its subversion by stablecoin Issuers as such the bill allows state And federal banks to issue stable coins Under their existing Charters it also Effectively forces stable issuers to Turn into a limited type of Bank Specifically the bill permits State Regulated non-deposit trust institutions To issue stable coins up to A10 billion Market cap for reference the market app Of circle's usdc is $34.5 billion and Tether's usdt is almost $120 billion so Clearly they need not apply for Non-banks to issue stable coins in Excess of10 billion market cap they Would have to obtain a depository Institution Charter from the federal Office of the controller of the currency So what does all this actually mean for Existing stable coins well the bill Seems to be showing tether the exit as It would not be compliant under the Current circumstances thanks to an extr Territorial clause in the bill us Entities would be prohibited from Holding or transacting in usdt as tether Is headquartered in the British Virgin Islands supposedly aside from tether's Offshore status it also only redeems Usdt amounts above $100,000 and reserves the right to
Refuse Redemption at any time and for Any reason this also makes tether Non-compliant in addition the Bill's Reserve requirements would also Disqualify tether as usdt is partially Backed by riskier assets again making Tether non-compliant however most of Usd's transaction activity is driven by Retail users and remittances outside the US so while the bill would be a blow to Tether it probably wouldn't be fatal now Senator lus has been quite explicit About how the bill picks winners and Losers she openly favors Circle over Tether which is not surprising when you Consider that circle is headquartered in The US while tether is offshore however The bill might also put circle's feet to The fire currently Circle lacks the Corporate structures needed to comply so To continue operating it would have to Seek further licensing paxos has Demonstrated that this is possible by Obtaining a limited purpose trust Charter in New York but if Regulators Don't want to play ball with circle its Business could easily be Disrupted now another novel element of Lumus and Giller Brand's Bill relates to Stablecoin failures if an issuer becomes Insolvent it would be handled by the Federal Deposit Insurance Corporation or FDIC essentially this means that stable Coin failures would be handled similarly
To bank failures this is quite ambitious And it may be tricky to get crypto Skeptics in Congress to vote for such a Vision Senator gilbran has said that the Bill was drafted in collaboration with The relevant federal and state agencies And it certainly looks like it was now Ultimately this bill is less about Legitimizing existing stable coins and Adding consumer protections than it is About empowering Banks vis a stable coin Issuers this is not exactly great news For any stable coin issuers unless of Course Circle can obtain the necessary Licenses to continue operating in which Case lumus and Gill brand are basically Handing it a monopoly in the US that of Course would be very good for Circle and The US government however having a Stable coin Monopoly that is subject to Heavy regulation by the federal Government is a recipe for Centralization and censorship although That said it's not like the current Circle tether duopoly is particularly Decentralized or indeed censorship Resistant they both regularly freeze Assets at the behest of governments Around the world regulation that brings Stable coins closer under the purview of Of Banks and federal Regulators is Likely to only streamline this process Further and in this sense the lumus Giller brand bill is a reminder of the
US crypto industry's regulatory dilemma Basically you're damned if you do and You're damned if you don't without Coherent regulation the SEC is likely to Continue harassing the industry Unchecked chairman Gary gendler has even Said that stable coins are securities Which is just nuts clearly can't go on Like this the lamus Gill brand Bill and Representative mchenry's parallel bill In the house would classify stable coins As non-securities but while this should Keep the SEC at Bay crypto would be Subject to more invasive control by the Government and the Federal Reserve Anything that does not empower the Government with more control over crypto Is unlikely to become law in the current Congress then again of course election Season is underway as senator lus put it Back in April quote we're getting close To the time here in Congress when Politics takes over policy indeed the Window for the Democratic and Republican Parties to pass by partisan legislation This year has become extremely Slim in August Senate Majority Leader Chuck Schumer told a zoom call full of crypto Industry bigwigs that he was confident About quote getting something passed out At the Senate this year saying quote I Believe we can make that happen well He'll have to get his skates on then Because the Senate will only be in
Session for 15 more days before the Election so unless the likes of lumus Gillibrand and McKenry can execute a Christmas tree maneuver of some kind It's quite unlikely that we'll see any Crypto legislation passed until 2025 I Wouldn't hold my breath for President Biden signing the Bitcoin act into law Anytime soon if I were you next year However it's possible that the house Senate and the White House will be Controlled by Republican an now this is No guarantee that any laws beneficial to Crypto will actually be passed but it Would likely diminish the power of Crypto Skeptics in Congress if this Happens the content of any new crypto Bills introduced will likely not need to Appeal to crypto Skeptics at all and They may be easier to pass through both Chambers of Congress to boot this could Be a significant win for the crypto Industry and make the next few years Plain sailing when compared with the Current regulatory climate conversely Both the Senate and the White House Could remain in Democratic party hands This would likely mean more of the same For congress where compromise with Skeptics is essential for getting Anything crypto related off the ground But if Congress changes little then the Change in president may be more strongly Felt in other words the ball could be in
Kamala Harris's court she could indeed Reset the Democratic party's Relationship with crypto if she really Wanted to to she could take the lead and Encourage her party to work with the Industry on getting reasonable Regulation passed on the other hand she Has yet to mention crypto at all during Her campaign the fact that we still Don't know her views on crypto suggests That she is not the Degen that Donald Trump is unfortunately it is possible That she could continue her silence into Office and leave crypto up to the SEC However unless Harris turns out to be Openly hostile to crypto we do suspect That the next next four years will see More in the way of legislation and fewer SEC enforcement actions the SEC has Become highly unpopular and this has Created a real sense of urgency around Regulation on both sides of the aisle It's now so overdue in the US that it Seems inevitable that one of these bills Will be passed in the next Congress Let's just hope that whichever Bill Makes it over the line does the industry More good than Harm fingers crossed Right and that's all for today folks so Let us know what kind of crypto Regulation you would like to see in the Comments smash the like if you don't Want to see the US government hoovering
Up all 21 million BTC and don't forget To subscribe and turn your bell Notifications on so you can keep up with What politicians are trying to do to Your portfolio as always thank you for Watching and I will see you next time This is Guy signing off [Music]
