FIT21’s bipartisan support suggests a potential shift in U.S. crypto policy, while investors focus on long-term trends despite political uncertainty.
Crypto venture capitalists are noticing a “change in political tenor” in the United States, but they still believe that the November election results could significantly impact the industry.
The improved atmosphere for crypto companies was evident during the swift approval of spot Ethereum exchange-traded funds (ETFs) in May. Confidence in regulatory approval surged from 6% to nearly 100% in just two weeks.
In another significant move, the House of Representatives passed the 21st Century Act (FIT21) in May with bipartisan support. The bill aims to clarify the roles of government agencies in regulating digital assets, addressing a longstanding demand from crypto companies.
Despite signs of a more favorable environment for digital assets, the industry may need more time to fully recover. Cosmo Jiang, managing partner at Pantera Capital, has seen many blockchain–based businesses relocate overseas in recent years.
“Many entrepreneurs in our network have asked whether to move overseas or have already done so. It’s disheartening to lose talented entrepreneurs and their valuable ideas,” Jiang said.
Among the companies affected by the unclear regulatory landscape is Consensys, the parent company of MetaMask. On June 28, the Securities and Exchange Commission (SEC) accused Consensys of operating as an unregistered broker and selling unregistered securities since 2020. Consensys argues that the SEC “has not been granted authority” to regulate software interfaces like MetaMask.
Carlos Pereira, partner at BITKRAFT Ventures, explained that the lack of regulatory clarity and inconsistent government actions create significant uncertainty in the market. While he sees positive developments for the industry, he warns of remaining challenges:
“Currently, crypto is being discussed more positively in both political campaigns, but one side appears more ‘reactionary,’ becoming supportive only as it gained popularity, especially with donors. We believe different election outcomes can lead to different consequences.”
Summary Review: The upcoming U.S. elections have the potential to significantly influence the crypto industry, with the 21st Century Act and the changing political climate offering some hope. However, investors remain cautious, aware that the election results could lead to various outcomes for the regulatory landscape and the broader market.
Disclaimer: Remember that nothing in this article and everything under the responsibility of Web30 News should be interpreted as financial advice. The information provided is for entertainment and educational purposes only. Investing in cryptocurrency involves inherent risks and potential investors should be aware that capital is at risk and returns are never guaranteed. It is imperative that you conduct thorough research and consult with a qualified financial advisor before making any investment decision.
