Posted 11 months ago | by Catoshi Nakamoto

U.S. leadership is increasingly starting to discuss cryptocurrency and regulations for digital assets, while other members of Congress and states are discussing inviting Bitcoin mining in their respective states.

AdobeStock 194309303 U.S. Is Continuing To Have Talks About Cryptocurrency; States Supporting Mining, Laws Being Proposed

About this same time last year if you told anyone that crypto digital assets were about to go mainstream they would have laughed in your face. But now we have institutional adoption happening and integration into Paypal for buying and selling crypto, over 70% of U.S. Banks can offer their customers crypto and so much more. Beyond all that news, we have big-time players in government talking about Bitcoin and cryptocurrency finally starting to accept the technology.

In fact, Ben Armstrong founder and creator of the Bitboy Crypto Youtube channel went to Texas to give a speech to regulators on blockchain and crypto digital asset technology. A few weeks later, Texas passed a positive crypto bill, with governor Greg Abbott posting a video to his Twitter account stating he welcomes blockchain technology companies to Texas.

The new legislation creates much-needed legal clarity for companies in Texas involved with Bitcoin and other digital assets. H.B 4474 revises Texas’s Uniform Commercial Code to include a definition on “virtual currency” and ensures that key business laws apply to cryptocurrencies as well. In an article for the National Law Review, Daryl Roberston and Patrick Boot write, “The Virtual Currency Bill…provides a clear and concise framework for establishing ‘control’ over virtual currency…and clarifies that control can be established regardless of whether the power to control is shared with another person, a critical element in order for banks and other non-bank financial institutions to effectively provide custody services for virtual currencies.” Robertson and Boot further express that “the surgical approach taken by the Bill’s drafters…is a prudent step for a state like Texas…and provides the proper balance to allow the industry to continue maturing while leaving adequate room for additional regulatory changes in the future.”

Now Ben has been invited to Alabama to speak to regulators and hopefully more states will ask for those of us in the blockchain industry to speak about the space and the implications this technology can have on our future. According to the National Conference of State Legislature (NCSL), thus far 31 states or a little over half of the 50 states in the U.S. have said they will consider blockchain/cryptocurrency regulations or laws.

NCSL writes the following:

“Thirty-one states have pending legislation in the 2021 legislative session. Arizona created a blockchain and cryptocurrency study committee. Arkansas clarified control of virtual currency under the Uniform Commercial Code and amended the Uniform Money Services Act to include virtual currency. Hawaii adopted a resolution requesting the department of commerce and consumer affairs to reconsider its 2016 ruling on asset reserve requirements for virtual currency companies and cryptocurrency companies to conduct business in Hawaii and to align the state’s asset reserve requirements for these companies with the asset reserve requirements in other states.

Indiana repealed the unclaimed property act and replaced it with the revised unclaimed property act that includes virtual currency. Kentucky created the new section of KRS 139 which defines various terms relating to commercial mining of cryptocurrency using blockchain technology. Louisiana adopted a resolution commending Bitcoin for its success in becoming the first decentralized trillion dollar asset and encourages the state and local governments to consider ways that could help them benefit from the increased use of this new technology.

North Dakota required, during the 2021-22 interim, the legislative management shall consider studying the feasibility and desirability of regulating special purpose depository institutions and regulating other entities engaged in virtual currency business activities. The legislative management shall report its findings and recommendations, together with any legislation required to implement the recommendations, to the 68th legislative assembly. Wyoming created a cryptocurrency staking program and advisory council; provides for matching funds related to carbon capture, utilization and storage projects and provided for the formation and management of decentralized autonomous organizations.”

Meanwhile, Wyoming, Florida, and Texas have encouraged miners to come mine in their states after laws pushed directly by the Chinese Communist Party (CCP), have barred crypto companies and as a result miners from dealing with Chinese banks.

As Bitboy Crypto reported though this could be a blessing in disguise as American miners now have the chance to rise up and take back the hashrate power. It’s not just individual states, Congress as a whole isn’t ignoring the crypto markets any longer either. For better or worse they are now discussing it and have put crypto digital assets high on their priorities list.

Last week, Congress held a hearing on the blockchain, Bitcoin, and crypto digital assets, examining the risks and potential opportunities in the space, as well as their impact on the financial system. The House Committee on Financial Services hearing was ominously titled: “America on ‘FIRE:’ Will the Crypto Frenzy Lead to Financial Independence and Early Retirement or Financial Ruin?

One curious comment made during the hearing was by Rep. Anthony Gonzalez who flipped the argument that Bitcoin is used for illicit transactions on its head stating a statistic by Katie Haun. In respect of, “the commentary around whether we should allow cryptocurrencies to exist along AML lines, I would ask, compared to what? Compared to fiat where 99% of money laundering goes unprosecuted?” Gonzalez asked.

Shockingly this was the U.S.’s fourth hearing on cryptocurrency last month as reported by Coindesk. The first was more bashing of Bitcoin from U.S. Sen. Elizabeth Warren (D-Mass.), who hosted a Senate subcommittee hearing on cryptocurrencies in early June.

After the second hearing titled: “Virtual Hearing – Digitizing the Dollar: Investigating the Technological Infrastructure, Privacy, and Financial Inclusion Implications of Central Bank Digital Currencies” in mid June, Rep. Maxine Waters (D-CA) announced that the House Democrats had formed a working group focused on cryptocurrencies. That hearing was held by the House Financial Services Committee’s fintech task force.

As a reader’s note, the Central Bank of Central Banks, or the Bank Of International Settlements (BIS) research team recently said in a study that crypto digitals assets pose no threat to international fiat currencies, as Bitboy Crypto reported.

Ron Hammond, Director of Government Relations at The Blockchain Association commented about the latest House meeting held on June 30th.

There are two more states that have been racing to pass friendly crypto legislation, Tennessee and Arizona who want to become the U.S’s capital of blockchain.

In addition, there are two significant laws for crypto that should be focused on those are the Illinois’ trust charter bill and Nebraska’s new similar law which would create a special purpose trust charter for digital assets, that both new start-up businesses and existing financial institutions – could take advantage of, according to Rep. Margaret Croke (D), the Illinois bill’s sponsor.

However, some Congress members feel different than their counterparts in BIS and constituents in Colorado, Wyoming, Florida, and Texas to name a few pro-cryptocurrency states.

Other Congressional members like those in New York, are focused on creating regulations that will impede the industry creating hurdles for companies in the crypto space to jump over. But it’s not just on the state level there are also federal actions being pondered as well. For instance, in May, during another hearing, the Office of the Comptroller of the Currency, the Federal Reserve, and the Federal Deposit Insurance Corporation discussed creating an interagency group to examine crypto policy as confirmed by Fed Vice Chair Randal Quarles.

The IRS has also asked Congress for approval and the authority to obtain cryptocurrency data.

Even the Acting Comptroller of the Currency Michael Hsu has announced that he has ordered his staff to review all pending matters and guidance issued under the Trump administration pertaining to currency. This means that several laws passed by Brian Brooks may be scrutinized and not just laws but Trust Charters that were given to Anchorage, Paxos, and others to operate in the U.S.

There’s also some slightly positive news on the regulator side as well. SEC Commissioner Hester Peirce has publicly said that the SEC should have approved a Bitcoin exchange-traded fund (ETF) in the U.S. a long time ago.

“I thought that if we had applied our standards as we have applied them to other products, we would already have approved one or more of them. With each passing day, the rationale that we have used in the past for not approving seems to grow weaker,” Pierce said during an interview with CNBC.

The U.S. is far ahead of where it used to be when it comes to accepting digital assets like Bitcoin and Ethereum existing. However, with calls by the Congressional Blockchain Caucus Co-chair Congressman Rep. Bill Foster (D-Ill.) to not only backdoor cryptocurrency for courts to reverse transactions but talks of KYC being required for every crypto business, regulations are almost sure to come. Foster cites the recent ransomware attacks as a reason for why the government would need to reverse transactions.

I’ll leave you with this article from the Washington Post published in May, expressing that “Joe Biden’s administration is now looking at crypto and that White House officials have received briefings from federal regulators.”

You can watch the full video of the hearing: “America on ‘FIRE:’ Will the Crypto Frenzy Lead to Financial Independence and Early Retirement or Financial Ruin?” conference below.

Bitcoin is currently trading at [FIAT: $34,004.11] UP 1.4% in the last 24 hours according to Coingecko at the time of this report.

About Catoshi Nakamoto

c6ea0c3794492f30883e516d39b2597a?s=90&d=blank&r=g U.S. Is Continuing To Have Talks About Cryptocurrency; States Supporting Mining, Laws Being ProposedActivist/Journalist, former writer - We Are Change, The Mind Unleashed, Coinivore, others. Currently writing for - Activist Post and Bitboy Crypto. Not Right or Left Apolitical. I Care About Truths (CATS.) Cryptocurrency enthusiast, I mined and lost 100+ BTC in 2010-2011. I work with - Bitboy, SoMee, CEEK, Presearch, and W3BT aka FMW Media Group. Friend of mostly everyone who isn't a dick. Just A Cool Cat.