Cryptocurrency Bill Blocked by Bank Lobby... Why is the Bitcoin (BTC) Rally Surging?

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A cryptocurrency bill was thwarted due to lobbying by the U.S. banking sector. However, regulatory authorities are accelerating the development of their own regulations. A paradoxical situation has emerged where technological innovation, combined with this, is actually triggering a bull market.

On September 22nd (local time), the cryptocurrency-specialized YouTube channel Paul Barron Network uploaded a video featuring a conversation with former Commodity Futures Trading Commission (CFTC) Chairman J. Christopher Giancarlo. Giancarlo discussed the background behind the failure of the U.S. cryptocurrency market structure bill. He criticized, "The banking sector has opposed all innovations, from the introduction of ATMs to the integration of card chips." He further emphasized, "Even if they block legislation through Congress, the history of eventually accepting it belatedly is repeating itself."

Even amidst the legislative vacuum, regulatory uncertainty is being rapidly resolved. SEC Chairman Paul Atkins and CFTC Commissioner Mike Selig have directly embarked on rule-making. Giancarlo stated, "Even during my previous tenure, the authority to regulate virtual asset futures was not explicitly defined, but I built the system myself." He explained that the two leaders would directly establish effective rules to support innovation. The recent innovation exemption clause introduced by the SEC was also evaluated as a first step towards absorbing onshore liquidity.

The tokenization of the stock market was also identified as an inevitable trend. Traditional stock issuance made it difficult to even identify shareholder composition due to complex intermediary institutions. By introducing tokenized securities, companies can establish a direct line with investors. Direct rewards, such as discounts for token holders, are also possible. Giancarlo predicted, "All financial products will be tokenized within 10 to 15 years." Indeed, the generational shift is accelerating, with spot decentralized exchange volumes of major blockchains like Solana (SOL) exceeding that of the New York Stock Exchange.

Outdated Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations were identified as major obstacles. A recent example is the customer information leakage incident at a large European fintech company. Governments and centralized institutions indiscriminately accumulate personal information, making them targets for hacking. Giancarlo pointed out that even the stablecoin regulation bill GENIUS is tied to the Bank Secrecy Act (BSA) surveillance system, thereby restricting innovation. He suggested that a balance should be struck by tracking suspicious transactions but only revealing identities with a warrant when criminal charges are proven.

[Article Key Summary]

-Former CFTC Chairman J. Christopher Giancarlo assessed that despite the banking sector's obstruction of legislation, the upward trend continues due to market innovation and the establishment of self-regulations.

-With the expanded adoption of tokenized securities, all financial products are expected to be tokenized within 10 to 15 years, and Solana (SOL) is rapidly absorbing trading volume.

-Outdated AML and KYC regulations and the vast accumulation of data were cited as key risk factors that infringe on financial privacy and hinder innovation.

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