Blockdaemon forecasts there will be significant progress in the US crypto regulatory environment by 2025. Sam Kim, Head of Legal & Compliance at Blockdaemon, has also predicted Senate passage of the FIT21 bill, with bipartisan support and eventual signing by the incoming president.
Blockdaemon’s report highlighted two regulatory policies in the legislative process, including the Staff Accounting Bulletin No. 121 (SAB 121) and the 21st Century Financial Innovation and Technology Act (FIT21). The FIT21 Act, passed by the House in May 2024, awaits further action, while efforts are focused on repealing SAB 121. The FIT21 Act establishes clear guidelines for digital asset regulation, including SEC and CFTC jurisdiction, asset classification, and custody rules for financial institutions.
Impact of the Presidential Election on Crypto Regulations
As the US presidential election approaches, Blockdaemon’s report examines recent regulatory advancements in digital assets, considering their potential impact on the industry’s future. According to the report, regardless of whether Donald Trump or Kamala Harris is elected in the next election, the year will provide greater regulatory clarity for digital assets.
The report also highlighted the obstacles in achieving congressional agreement on a regulatory strategy for digital assets. While some congressional members support a regulatory framework, others believe no framework is necessary.
Read also: Trump’s Election Odds Propel Crypto Market, Bitcoin Stays Stagnant
Blockdaemon’s blog post also highlighted the ongoing efforts to repeal SAB 121, which the platform considers a necessary change. Though President Joe Biden vetoed the SAB 121 repealing proposal, the congressional effort is seen as a positive step forward.
Further, the report emphasized the role of FIT21 in repealing SAB 121. By classifying digital assets and defining the role of regulations and regulatory agencies, FIT21 effectively repeals SAB 121, paving the way for financial institutions to custody digital assets.
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