On October 23, the Pennsylvania House of Representatives passed HB-2481, a groundbreaking bill that aims to establish a comprehensive regulatory framework for self-custody and crypto payments. The bill also seeks to exempt digital assets from additional taxation and reiterate the right to operate a node.
The bipartisan vote witnessed an overwhelming majority, with 176 votes in favor and only 26 votes against. However, the bill still requires approval from the Pennsylvania Senate and the signature of Pennsylvania Governor Josh Shapiro to officially become law.
HB-2481 was crafted by the Bitcoin advocacy group Satoshi Action Fund, with Dennis Porter, the co-founder and spokesperson for the group, expressing his satisfaction following the successful passage of the bill. Porter highlighted the ongoing efforts of crypto advocacy groups to push for well-defined regulations for digital assets in the United States. However, industry leaders have voiced concerns that the US is lagging behind other jurisdictions, such as the European Union, which have already established regulatory frameworks.
Tether CEO Paolo Ardoino remains optimistic about the future of crypto regulations in the US, particularly after the 2024 election. Ardoino believes that there will be significant improvements in crypto regulations and criticized US financial regulators for their lack of a coherent crypto policy.
The ongoing disagreements between different government agencies regarding the classification of digital assets have created uncertainty within the nascent asset class in the United States. As a result, many crypto companies have started relocating to more favorable jurisdictions, including Japan, Singapore, Australia, the United Kingdom, and Switzerland.
In 2023, Brad Garlinghouse, the CEO and co-founder of Ripple, warned that US-based crypto companies had already begun the process of moving to other countries due to the regulatory uncertainty in the US.
During an October 19 meeting of the Securities Industry and Financial Markets Association, Rostin Behnam, the Chairman of the Commodity Futures Trading Commission (CFTC), acknowledged the limitations faced by the regulatory agency when it comes to digital asset policy. Behnam expressed hope that this situation would change under the next administration.