Congress Eyes Crypto Reforms for 2024

In the realm of cryptocurrency, Congress contemplates significant reforms for the year ahead. From redefining "legal tender" to safeguarding self-hosted wallets, here are five key proposals to kickstart the new legislative season.

1. No CBDC Authority for Federal Reserve

Amidst concerns over discretionary actions, Congress aims to explicitly bar the Federal Reserve from launching a central bank digital currency (CBDC). Recent revelations in the "Doomsday Book" highlight the need for a clear boundary, preventing the Federal Reserve from exerting authority without explicit congressional approval.

2. Rethinking Federal Reserve’s Activities

To address potential financial imbalances, Congress eyes revisions to the Depository Institutions Deregulation and Monetary Control Act of 1980. The proposed amendments seek to set a defined timeframe for cost recovery, ensuring transparency and accountability in the Federal Reserve's initiatives.

3. Decoding "Legal Tender" Confusion

To dispel misconceptions surrounding "legal tender," Congress contemplates a straightforward amendment. A clear statement, such as "Legal tender status does not mandate private entities to accept U.S. coins and currency," aims to demystify the practical implications of this term.

4. Protecting Self-Hosted Wallets

In response to potential government intrusion, Congress proposes safeguards for self-hosted wallets. Emphasizing the equivalence of holding digital assets to physical cash, the legislative focus is on requiring a warrant for any interference in transactions between two parties.

5. Streamlining Right to Financial Privacy Act

Congress seeks to fortify financial privacy by eliminating exceptions within the Right to Financial Privacy Act. Striking these exceptions would necessitate law enforcement and government agencies to obtain warrants for accessing Americans' financial records, reinforcing constitutional protections against unchecked governmental power.

In contemplating these reforms, Congress faces the challenge of balancing financial innovation with privacy and accountability. As the new year unfolds, these proposals provide a roadmap for Congress to navigate the evolving landscape of cryptocurrency regulation.