On October 23, the Pennsylvania House of Representatives successfully passed HB-2481, a groundbreaking bill that aims to establish a comprehensive regulatory framework to safeguard self-custody and crypto payments. Additionally, the bill seeks to exempt digital assets from additional taxation and affirm the right to operate a node. This remarkable achievement was attained through a bipartisan vote, with an overwhelming majority of 176 to 26. However, for the bill to become law, it still requires approval from the Pennsylvania Senate and the signature of Pennsylvania Governor Josh Shapiro.
The masterminds behind HB-2481 are the Bitcoin advocacy group, Satoshi Action Fund. Dennis Porter, the co-founder and spokesperson of this group, expressed his satisfaction with the successful passage of the bill. He highlighted the ongoing efforts of crypto advocacy groups to establish well-defined regulations for digital assets in the United States. While these groups strive for clarity, industry executives have expressed concerns that the US is lagging behind other jurisdictions, such as the European Union, which have already implemented regulatory frameworks.
Paolo Ardoino, the CEO of Tether, recently shared his optimism that crypto regulations in the US would improve following the 2024 election. He criticized US financial regulators for lacking a coherent crypto policy, stating that they have “dropped the ball” in this regard. The ongoing disagreements among different regulatory agencies regarding the classification of digital assets have created a sense of uncertainty surrounding the status of this emerging asset class in the United States. Consequently, several crypto firms have chosen to relocate 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 started relocating due to the regulatory uncertainty in the US. This exodus further highlights the urgency for clear and comprehensive regulations in the country. During a Securities Industry and Financial Markets Association meeting on October 19, Rostin Behnam, the Chairman of the Commodity Futures Trading Commission (CFTC), admitted that the regulatory agency currently feels “handcuffed” when it comes to digital asset policy. However, Behnam expressed his expectation that this situation will change with the next administration, offering hope for a more favorable regulatory landscape in the future.