Rep. Bryan Steil: U.S. crypto regulation catching up to other regions

Regulatory Landscape & Legislation - The Clarity Act aims to establish a clear regulatory framework for crypto, fostering innovation and protecting consumers by addressing the shortcomings of the current US regulatory environment [2][5] - The Clarity Act seeks to solve the problem of companies moving offshore due to a lack of consumer protection and hindered innovation by encouraging innovation and development in the United States [4][5] - The Genius Act, a stable coin regulation bill, has been signed into law, marking a significant milestone and a watershed moment for crypto regulation in the US [6][8] - The industry believes the US is catching up in crypto regulation after four challenging years, with companies desiring to innovate and develop within the US regulatory framework [6][7] - The Senate needs to act quickly on the Clarity Act, as the House-approved framework has garnered broad support and addresses key regulatory needs [11][12] Market Impact & Investment - The Clarity Act, combined with the Genius Act, is expected to drive significant investment in the United States, benefiting workers, consumers, and the entire crypto industry [8][9] - The stable coin market is recognized as significant, with potential for domestic payment rail improvements and global impact, especially in regions with less confidence in national currencies [20][21] - Regulated entities, such as US banks, are now able to enter the stable coin market, offering US dollar-backed stable coins under a US regulatory framework, which is beneficial for US dollar dominance [21][22] - The industry anticipates smaller players will be able to enter the crypto market and innovate without the burden of high legal costs, fostering a true democratization of the internet (Web3) [36][37] Tax Policy & Oversight - The current tax framework for crypto is considered poorly structured, and the industry suggests taxing crypto upon the realization of gains, similar to the taxation of mined gold [31][32] - Congress will oversee the rulemaking process by regulators like the SEC and CFTC to ensure rules align with legislative goals and intent, especially after the Supreme Court's decision on the chevron doctrine [29][30]