About the Crypto Market: US Congress Helps Legitimize Digital Coins
Updated: Aug 11, 2022
If you've been reading the news lately, you might think the cryptocurrency market is falling apart. But there's a lot more to this area of tech, with the four sectors with the largest market capitalization, DeFi, smart contract platforms, and currencies all experiencing muted returns. In contrast, the market with lower capitalization saw high returns.
For example, as of June 2022, Binance launched an ambitious $500 million fund to help propel web3 projects, while Solana proposed a $100 million fund helping NFTs and new DeFi projects. As major investors in the blockchain space continue to invest astronomical amounts of cash, the crypto market isn't precisely as some make it out to be in the media.
New US Crypto Policies Coming Down the Pipeline
Recently, news has come out that the United States Congress plans to start regulating the crypto market, showing signs that they mean business. This new bill, known as the Responsible Financial Innovation Act, is still in its early stages but will focus on the following main points below:
The majority of cryptocurrencies will be categorized as commodities, making the CTFC (the Commodities Future Trading Commission) for overseeing this sector
Transactions under $200 will be eligible for tax exemptions
All stablecoins will enjoy full backing and consistent regulations
All crypto exchange platforms will need to register with the CTFC
Private keys to non-custodial wallets will have the same protection as those held by significant trading platforms
There are still some questions on what this means for NFTs and DeFi
With new CTFC oversight, this signals that the cryptocurrency market is an investment that's both legitimate and likely to stick around. Some experts believe these new regulations will be the deciding factor in pushing cryptocurrencies to be used in retail settings, which should be interesting to see as this unfolds.
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