In the wake of the tumultuous rise and fall of Bitcoin this year, a bipartisan proposal has been presented to the senate which would allow the government to regulate the trading of the world famous cryptocurrency, according to AP News.
Sens. Debbie Stabenow, D-Mich., and John Boozman, R-Ark, two members of the Senate Agriculture Committee, are championing the bill which would allow the Commodities Futures Trading Commission to regulate the Bitcoin market.
According to a report by Public Citizen, the crypto industry spent $9 million last year, and it is likely that more will be spent in 2022 to combat this regulatory legislation.
In the proposed bill, which is sponsored by Stabenow and Boozman, Bitcoin would be regulated by the CFTC. Most crypto investors would prefer that the CTFC is overseeing the industry, rather than the much harsher SEC.
According to Cory Klippsten, the CEO of Swan Bitcoin, “(The cryptocurrency industry is) trying to get anyone other than the SEC to regulate them.”
Stabenow and Boozman joined forces at a press conference in which they both shared concern that the CFTC would need more resources than it currently has in order to be able to adequately oversee the crypto markets.
To that end, they propose that by imposing a user fee on crypto purchases the CFTC could achieve the funding necessary to properly regulate the industry.
Many investors, while still interested in the cryptocurrency market, are wary following its major downturn this calendar year.
According to a Forbes article on August 2, “analysts at JPMorgan Chase say retail investors have been driving the recent bounce in Bitcoin and Ethereum prices and that the most intense phase of the crypto market deleveraging process “appears to be behind us.”
Bitcoin, which peaked at $61,000 in November 2021, has steadily fallen in 2022 and currently sits at $22,000 at the time of this article being written.
Uncertainty in the crypto market is heightened by ongoing SEC ivestigations into Coinbase, one of the most popular apps for Bitcoin exchange.
In a press release on the 21st of July, the SEC “announced insider trading charges against a former Coinbase product manager, his brother, and his friend for perpetrating a scheme to trade ahead of multiple announcements regarding certain crypto assets that would be made available for trading on the Coinbase platform.”
“Sensible regulation is a win for everyone, It gives people more confidence in crypto, but I think it’s something we have to take our time on and we have to get it right,” says Ben Weiss, the CEO and co-founder of CoinFlip.
Many leading crypto investors are preaching caution while the young industry is still trying to reach an equilibrium.
Bitcoin and other cryptocurrencies certainly are an enticing investment, but should only be a part of one’s portfolio until it can be proven as a solid investment for reliable gains.
These movements in Washington may pave the way for a safer and more consumer-friendly crypto industry, which would be a welcomed sight to its many investors. This more regulated market, could certainly the crypto industry to rebound in the future.