Originally published on: October 11, 2024
During the recent Permissionless III event, Congressman John Curtis of Utah joined forces with Senator Mike Lee to tackle the pressing issue of digital asset policy in the United States.
When asked about the bipartisan cooperation in overturning Staff Accounting Bulletin-121 (SAB-121), which had imposed strict regulations on crypto custody by banks, Congressman Curtis acknowledged that the support is “fragile.” He emphasized the importance of finding common ground with Democrats to establish regulatory policies.
According to Curtis, many lawmakers struggle to grasp the complexities of cryptocurrencies, prompting him to urge industry professionals to educate policymakers and demystify the technicalities of the crypto sector.
Senator Mike Lee also weighed in on the discussion, highlighting the potential threats to cryptocurrencies. He warned against the Federal Reserve’s potential creation of a central bank digital currency (CBDC), excessive federal regulation, and conflicting state-level regulations that could stifle innovation in the industry.
Lee emphasized the unique nature of digital assets as a medium of exchange, distinct from securities or commodities. He even suggested that capital gains on crypto transfers should not be taxed to foster growth and development in the sector.
In conclusion, both lawmakers stressed the need for balanced regulation to support innovation in the crypto industry and prevent overreach by the government. Stay informed on the latest developments in crypto laws and guidelines by subscribing to our Law Decoded newsletter for weekly updates.
