Decisions Made in Washington This ‘Crypto Week’ to Directly Affect Your Crypto Wallet

• Three major US crypto bills are under discussion by the House of Representatives – CLARITY Act, GENIUS Act, and Anti-CBDC Surveillance State Act
• These proposed laws could set the tone for the next decade
• China’s Q2 GDP and US CPI (Consumer Inflation) monthly reports are also scheduled for this week

This week (dubbed Crypto Week) could be a monumental one for the crypto market and the industry, as all the major US crypto bills are under discussion by the House of Representatives. The bills in question are the CLARITY Act, GENIUS Act, and Anti-CBDC Surveillance State Act.

These legislations are important because they are aiming to bring a lot of changes to how crypto works in the US. 

The Main Event: “Crypto Week” in Washington

For instance, the CLARITY Act defines what constitutes a security versus a commodity in crypto, and gives clear jurisdiction between the SEC and the CFTC, finally addressing the confusion that has plagued cases like Ripple vs. SEC.

Currently, crypto firms often get contradictory signals where the SEC calls something a security, and the CFTC calls it a commodity.

Then there’s the GENIUS Act, which tackles stablecoins. More precisely, it will require stablecoin issuers to hold 1:1 cash reserves backing every token, register with federal regulators, and comply with anti-money laundering and counter-terrorism financing rules.

Last but not least, the Anti-CBDC Surveillance State Act will block the Fed from creating or issuing a Central Bank Digital Currency (CBDC). Its supporters fear that a CBDC could let the government track every transaction, perceiving the bill as a step to protect financial privacy.

The US is catching up to Europe and Asia in regulating crypto, and these proposed laws could set the tone for the next decade.

Crypto week’s economic reports 

Apart from the above legislations, several economic reports are scheduled to be released during the ‘Crypto Week’ as well, potentially impacting crypto markets.

First in line is China’s Q2 GDP, which is a big deal considering that, in case of some less-than-ideal numbers, it can impact worldwide willingness to take on risk.

If inflation runs hot, the US CPI (Consumer Inflation) monthly report could weigh on crypto in the short term.

There are four more US reports expected to be released in the next few days. These are PPI (Producer Inflation), Initial Jobless Claims, Philadelphia Fed Manufacturing Index, and Fed Balance Sheet.

Combined, they could trigger big swings in crypto and equities, especially since traders keep a close eye on whether the Fed will resume its tightening monetary policy.