A crucial vote to determine BTC's trend is coming. Will Washington accept or reject it?

Compiled by: Blockchain Knight

As BTC’s value soars and Wall Street circles around it like a hawk, the U.S. Crypto asset industry is holding its breath as a key vote takes place in Washington next week.

The vote is on the 21st Century Financial Innovation and Technology Act (Fit21), which may reshape the regulatory landscape for digital assets. The result could either welcome the industry in or put the brakes on its recent spurt in growth.

Fit21 proposes a major shift in the U.S. government’s approach to digital currencies. Currently, the regulatory landscape is fragmented, with the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) both having a say.

The Fit21 bill would establish the CFTC as the primary regulator of Crypto assets, giving the industry a clearer understanding of the rules it needs to follow.

The bill would also establish guardrails to protect consumers from risky behavior and set protocols on how these assets should be held, how they should be handled in bankruptcy proceedings, and more.

The BTC industry expressed support for Fit21, calling it "critical" to the future of the U.S. digital asset market. The lack of clear regulations has been a major sticking point for the industry, with some companies even threatening to abandon the U.S. altogether.

The Crypto Asset Innovation Council is concerned that the U.S. will lag behind other countries in embracing BTC innovation.

In an open letter to lawmakers, the Crypto asset industry said: "With this legislation, we can accelerate the development of blockchain technology and digital assets, promote financial inclusion, and protect national security."

Recently, Wall Street giants have entered the Crypto asset field, adding another layer of mystery to the upcoming vote.

In January, a large wave of spot BTC ETFs were approved, opening the door for Wall Street to get a piece of the Crypto asset field. These ETFs allow traditional investors to invest in BTC without having to directly purchase and hold Crypto assets themselves.

But hosting these ETFs can incur huge fees, which has some industry observers worried that Wall Street's involvement could stifle innovation.

With the rising price of BTC and pressure from the digital asset industry and Wall Street, the upcoming Fit21 bill vote is a watershed for Crypto assets in the United States.

If passed, the bill will usher in a new era of regulatory clarity and promote the development of the industry. However, if the bill is rejected, the prospects of Crypto assets in the United States remain unclear, potentially leading to an outflow of Crypto asset companies and hindering innovation.

With 10 days until the vote, all eyes are on Washington as lawmakers decide whether to welcome Crypto assets with open arms or shut them out.