“TD Cowen: Slim Chances for US-Canada Crypto Market Structure Bill to Pass this Year; Trump’s Reelection Not Necessarily a Continued Support for Cryptocurrencies”

"TD Cowen: Slim Chances for US-Canada Crypto Market Structure Bill to Pass this Year; Trump's Reelection Not Necessarily a Continued Support for Cryptocurrencies"

"TD Cowen: Slim Chances for US-Canada Crypto Market Structure Bill to Pass this Year; Trump's Reelection Not Necessarily a Continued Support for Cryptocurrencies"

According to a report by The Block, investment bank TD Cowen has stated that a cryptocurrency market structure bill called the “21st Century Financial Innovation and Technology Act” (FIT21) may not have a chance of becoming law in this session of Congress, but the bill will prepare lawmakers for their work next year.

The Republican-led bill takes a comprehensive approach to regulating the entire cryptocurrency market and shifts more responsibility to the Commodity Futures Trading Commission (CFTC). The bill is set to be voted on in the House of Representatives at the end of this month.

FIT21 is unlikely to pass in the Senate, as Democratic Representative Maxine Waters opposes the bill, and Democratic Senator Sherrod Brown, Chairman of the Senate Banking Committee, has remained silent on the issue. However, TD Cowen wrote:

TD Cowen also added that the vote on the FIT21 bill could reveal how Democrats and Republicans view key issues such as anti-money laundering and investor protection, and they expect the bill to pass unanimously in the House of Representatives.

The upcoming bill differs slightly from the original version, mainly due to technical amendments, including the addition of Majority Whip Tom Emmer’s “Securities Clarity Act,” which aims to clarify the categorization of digital assets and create a new definition for tokens that fall between commodities and securities.

Trump’s stance may not be maintained after his election
US Presidential candidate Donald Trump expressed support for cryptocurrency in a recent event, but TD Cowen states that if Trump wins the presidential election this year, it is unclear whether he will maintain this supportive stance. The investment bank believes that Trump could become a “complicating factor” in the future.

During the event, Trump stated in response to a question from an attendee that “Cryptocurrency is leaving the US due to hostility towards it,” and he does not want that to happen. He also said, “If you support cryptocurrency, you better vote for Trump.”

TD Cowen states: