Another important aspect for cryptocurrency investors besides price is the scope of global crypto regulations and the limitations they create. These regulations will significantly affect the future of the industry, and strict rules can cause a significant decrease in prices. There are two authorities to be followed regarding global regulation: one is US regulations and the other is EU regulations.
The United States needs to take concrete steps to establish global legal norms for cryptocurrencies. The rules in the financial sector are determined by both the US and the EU. Therefore, what rules the world will follow regarding cryptocurrencies is more important than local regulations.
In particular, steps to combat money laundering, stock market regulations, KYC standards, stablecoins, and the DeFi sector will directly affect investors in all countries. Because the limits and rules in the current banking system are adjusted according to the global norms determined by US and EU regulators.
As part of the preparations for US cryptocurrency laws, two bills passed the committees of the House of Representatives. The approval process in the House of Representatives was extended due to the congressional elections, and according to today’s news, the vote was postponed to 2024.
The Chairman of the House of Representatives Digital Assets Subcommittee, US Representative French Hill, stated that the voting on the two important bills could be postponed to the “beginning of 2024”. What were these bills? Stablecoin regulation and rules affecting the general cryptocurrency markets. The leadership elections in the House caused the process to be extended and delayed. In addition to some members withdrawing their support, Gensler strongly opposes them. Democrat Party SEC Chairman Gensler has repeatedly stated that the existing laws are sufficient for cryptocurrencies.