Switzerland’s largest bank, UBS, expects the US Congress to take a long time to pass cryptocurrency legislation despite growing interest in cryptocurrency investments and regulators are asking Congress to review cryptocurrency legislation.
Congress could take a long time on cryptocurrency legislation
The biggest bank in Switzerland, UBS, published its point of view on EE crypto legislation. UU. last week after the Committee of the Chamber of Financial Services held a large audience on the regulation of cryptocurrencies and stable currencies.
The Swiss bank’s U.S. Office of Public Policy explained that at the hearing, a senior Treasury official discussed recommendations made in a stablecoin report issued by the Treasury Department and other regulators.
“To fill regulatory gaps and address financial stability concerns, regulators would like Congress to develop legislation that would regulate issuers of stablecoins such as banks,” the UBS team detailed, noting that this proposal has received approval from some lawmakers.
The Federal Reserve also made it clear in its recent report on central bank digital currency (CBDC) that it would welcome guidance from Congress before proceeding with a digital dollar.
However, Switzerland’s largest bank believes:
It will take time for policymakers to digest the complexities of these issues and reconcile potentially divergent approaches to how digital assets should be regulated.
The UBS team further detailed: “Regulators can wait a long time for Congressional action, and in the meantime, they will have to deal with these issues using the limited and imperfect authorities they already have.”
However, the bank noted that interest in cryptocurrencies “is growing in Congress and among the general public.”
Additionally, there are reports that the Biden government may assess cryptocurrency legislation with an executive order in the near future.
In August of last year, US Senator Ted Cruz criticized his colleagues in Congress for trying to regulate cryptocurrency without understanding what it is.
The Texas senator said, “We shouldn’t regulate something we don’t understand yet. In fact, we should take the time to try to understand this. We must have some audiences, we must consider the consequences… We must not destroy people’s lives and livelihoods out of sheer ignorance”.
Meanwhile, two federal agencies, the US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), are collaborating to ensure investor protection in the crypto space.