David Sachs will speak at the 2024 Republican National Convention in Milwaukee, Wisconsin. (Photo: Scott Olson/Getty Images)
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David Sacks, the country’s first AI and Crypto Czar, held its first press conference on Tuesday with four congressional leaders. , Senate Agriculture Committee Chairman John Boosman (R., Ark.) and House Agriculture Committee Chairman Glen “GT” Thompson (R., Pennsylvania). The authorities have announced a bicameral working group responsible for developing digital asset regulations.
Sachs emphasized the need for clear rules, criticizing him as “four years of arbitrary prosecution and persecution of crypto companies.” His remarks targeted the SEC’s executive-driven approach. This claims that many crypto companies have hampered innovation and created regulatory uncertainty. He also said that the controversy that reignited in November by venture capitalist Mark Andreessen, who accused the bank of “fearing” in November to cut ties with cryptocurrency, was rekindled with the “banking” — It addressed concerns about crypto startups being denied access to banking services.
“This approach was driving this critical technology offshore in the future. We want to keep that innovation on land,” said former South African-American tech entrepreneur and venture capitalist. said the sax. “This is a week’s priority for the administration and we are excited that our Congressional counterparts are equally committed to ensuring American domination on digital assets.”
Sacks also said his digital asset market working group, established two weeks ago by an executive order from President Trump, is preparing to assess the feasibility of the “Bitcoin Reserve.” However, this order uses the broader term “digital asset stockpile” and may include other cryptocurrencies.
The press conference spotlighted two bills that could form the backbone of US crypto regulations. One was introduced Tuesday by Sen. Bill Hagerty (R. Tennessee) and aims to create a regulatory framework for Stablecoins. These new digital assets are designed to maintain stable value by being locked into separate assets, such as Fiat currencies such as US dollars and commodities. Currently, approximately $226 billion has been invested in Stablecoins. This was created primarily by two publishers: Tether, based in El Salvador, and Circle, headquartered in New York.
The law hosted by Senators Kirsten Gillibrand (D., New York), Tim Scott and Cynthia Ramis (WYO) is called the guidelines and establishment of national innovation for the US Stubcoin Act (Genius Law). It’s here. According to a draft obtained by Bloomberg, the bill requires that Stabrecoin be supported by US currency, Federal Reserve bills, Treasury bills, or similarly secure assets.
Stablecoin issuers face strict transparency requirements, including monthly audited booking reports, and there are criminal penalties for false disclosures. Non-bank issuers fall under the supervision of the office of the Secretary of Currency (OCC).
“Stablecoins have the potential to secure control of the US dollar internationally and increase the use of the US dollar digitally as a global reserve currency, and in the process, potential trillions of dollars are needed for the US Treasury Department. It could generate interest rates,” Sachs said.
Additionally, French Hill, chairman of the House Financial Services Committee, has announced the financial innovation and technology of the 21st Century Act (FIT21), another bill aimed at clarifying how digital assets are regulated. I emphasized it. Under the proposal, cryptocurrencies that are tightly controlled by small groups of developers or owners (like Binance’s BNB) will be supervised by the SEC, but more widely distributed tokens such as Bitcoin and Ether will be It will fall under the Commodity Futures Trading Commission (CFTC).
“I think that bill had the basics of what we’ll be reintroducing at the 119th Congress. There may be some modest changes, but there was bipartisan support, so the regulatory framework is there. As for that, that’s the approach the home takes,” Hill said. At Stablecoins, you think there is a bill that is very similar to the approach taken in the Senate,” he adds, referring to Hagerty’s proposal.
