As a result of the incredible volatility in the crypto money markets in recent weeks, legislators have been watching the price movements closely like everyone else. However, according to a congressman, legislators are unlikely to act on this issue anytime soon.
US Congressman Jim Himes said in an interview Friday with Yahoo Finance that Congress is not ready to introduce cryptocurrency legislation anytime soon, citing the lack of in-depth understanding of cryptocurrencies among legislators.
Representative Jim Himes (D., Conn.); He said that Congress was not ready to act anytime soon: “Most of my colleagues do not have a deep understanding of cryptocurrencies, what they can do, what the dangers are. Congress did not spend too much time on this ”and added:
“So, good or bad, there will be no legislation from the Congress of the United States anytime soon. However, with that, my colleagues are becoming more and more aware of the situation. ”
Even if Himes’ assumption about politicians proves correct, analysts are concerned about other types of government control in the near future. Federal Reserve Governor Jerome Powell recently suggested that the FED could be more interested in the field by issuing a digital currency.
Deutsche Bank analyst Marion LaBoure also commented on regulations in the crypto space in a recent research note:
“The second part of 2021 and the beginning of 2022 could be a turning point for cryptocurrencies around the world. Cryptocurrencies are a key priority on regulators’ agendas.
Crypto Regulation Unlikely To Come Soon
Himes says many lawmakers are still questioning whether cryptocurrency is a good thing. “What is he actually doing? What problem does it solve? ” he said he was raising such questions.
“You only at the Congress, people; I am telling you that there is a general atmosphere of the kind where it asks, “Can you tell me again, what’s good about cryptocurrency?”
“Don’t get me wrong, speaking of this doesn’t mean there will be an attempt to ban it, just the ways to regulate it, how it will be taxed and so on in the coming years. There will be many discussions like.
Himes thinks that for now the legal response to cryptocurrency volatility might be similar to the response to GameStop speculation that led to Congressional sessions but resulted in little concrete action.