The approval process for new cryptocurrency regulations in Washington has slowed significantly and is expected to remain stalled for several weeks. The primary reason for this delay is the lack of consensus in the Banking Committee and the sudden withdrawal of support from Coinbase, a leading and reputable U.S. crypto exchange. Coinbase was a key supporter of the bill, and its retraction has hindered legislative efforts, causing obstacles in the lawmaking process.
Efforts to establish a regulatory framework for cryptocurrencies in the U.S. Congress have been ongoing for some time to protect investors and ensure transparency and security in the financial system. With the growing global popularity of cryptocurrencies, many countries have started creating specific regulations for the sector. In the U.S., the need for rules to prevent illegal activities and safeguard investors is increasing. However, conflicting interests among stakeholders and technical complexities have complicated the process.
Now, with Coinbase’s support withdrawn, the Banking Committee must revisit consultations and reforms to draft a consensus bill. This situation may increase uncertainty in the crypto market, prompting investors to take precautionary measures. Additionally, opinions from other key players and regulatory bodies could influence the process.
Overall, establishing a legal framework for cryptocurrencies in the U.S. is a complex and time-consuming task requiring balance among various sectors. The current delay is part of this process, with further progress expected in the coming weeks.
Source: coindesk
