The Bitcoin and altcoin law, published on Tuesday, is already causing a lot of controversy. At the heart of the bill’s recommendations is the plan to organize various cryptocurrencies into separate categories. So what will be the consequences of this crypto money bill? Experts state that this bill will positively affect Bitcoin, but it points to a doomsday scenario for altcoin projects.
Can new bill destroy altcoin projects?
With the bill, they leave the regulation of cryptocurrencies to the Commodity Futures Trading Commission (CFTC) instead of the Securities and Exchange Commission (SEC). Also, the bill contains strict rules for crypto companies. In addition, the authorities plan to introduce registration and information disclosure requirements. According to these experts, it could be a big problem for altcoins in the market. Meanwhile, Senators Cynthia Lummis and Kirsten Gillibrand are optimistic that the law will pass through all phases of the judiciary.
Talking about Fidelity’s announcement last month to allow users to deposit their retirement funds in Bitcoin, Lummis said it was a great idea. He also added that Lummis Bitcoin could be a long-term part of pension funds that helps diversify the distribution of assets. According to Cynthia Lummis, investors only need some assets as a store of value and this is where Bitcoin shines.
Why is cryptocurrency regulation necessary?
Senator Kirsten Gillibrand said that the most important purpose of the legislation is to ensure transparency, accountability and certainty. Kirsten Gillibrand “When we met with industry leaders, they wanted to know the rules and roles of the various regulators.” he added. While briefing CNBC about the cryptocurrency bill, he added:
We’ve aligned the regulatory framework with the purpose of each cryptocurrency. Our goal is to get the cryptocurrency bill through four judicial committees. Regulation is necessary for all of us. We need to make sure you have consumer protection. We all need the basic rules of the road.
Two senators have played a vital role in drafting the bill over the past few months. The senators said the focus is on unifying the world of cryptoassets with the current regulatory framework. Two senators indicated that four committees would participate in the drafting of the bill. The senators also added that the distinction is not yet clear.
What do experts think about Bitcoin and altcoin law?
Microstrategy CEO Michael Saylor expressed his view on the impact of regulation on Bitcoin. He said that the top cryptocurrency will benefit from regulatory clarity that will facilitate and accelerate the participation of institutions. He also emphasized that this will increase the participation of traditional banks, public companies and institutional investors. In addition, Michael Saylor added that the bill will lead to the growth of the entire market.
On the other hand, Peter Schiff, CEO of Euro Pacific Capital, has the opposite view. Peter Schiff said that one of the main advantages of Bitcoin is the lack of regulation and the bill is not good news. Peter Schiff disagrees with the view that increased government regulation is a bullish signal for Bitcoin. According to him, one of the main benefits of Bitcoin is the lack of regulation compared to traditional payment methods.
The cryptocurrency bill comes at a time when Bitcoin proponents are becoming increasingly powerful in the US. However, the publication of the cryptocurrency bill does not mean that it will be adopted immediately. Therefore, the law that is expected to create negative pictures for altcoin projects has not yet been approved. In this process, steps can be taken to reduce the anxiety of investors.
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