Regulation
Pennsylvania House passes bipartisan Bitcoin bill
- Pennsylvania House of Representatives have passed “The Bitcoin Rights Bill”, with a bipartisan majority of 176 to 26.
- The bill seeks regulatory clarity to the digital assets industry, including on self-custody, payments and taxation.
Pennsylvania has passed “The Bitcoin Rights Bill”, a new legislation that seeks regulatory clarity to the crypto industry.
While the US continues to lag other countries and regions in terms of regulatory clarity for digital assets, the state of Pennsylvania has taken a huge step towards this with the passage of House Bill 2481.
Pennsylvania House passes major crypto bill
According to FOX Business, the new bill received bipartisan support in the Pennsylvania House of Representatives and passed on Wednesday, October 23, 2024, with 176 votes to 26. The bill outlines protections for Bitcoin and crypto holders, including the right to self-custody and use for payments. ‘Bitcoin Rights’ also provides guidelines on the taxation of Bitcoin transactions.
76 Democrats joined their Republican counterparts to pass the bill, FOX Business wrote.
The next stage will see the new bill come up for debate and voting at the Pennsylvania Senate, which is Republican-led. If it passes, the final stage will be forwarded to Gov. Josh Shapiro. These two steps commence after the November 2024 US election.
Crypto stands out as one of the topics candidates in the upcoming US election have sought votes on, including at the presidential level.
With Donald Trump taking a crypto-friendly stance, it’s been up to Kamala Harris to win the crypto holder’s vote. Despite crypto roundtables and positive policy plans, Harris isn’t connecting with the crypto vote.
That’s also despite her campaign receiving major donations from some wealthy crypto owners. The most recent is Ripple co-founder Chris Larsen’s $10 million XRP contribution. Larsen called for the Democrats to take a “new approach” to the issue of cryptocurrencies.
Meanwhile, with less than two weeks to go, forecasts put the majority of crypto holders down as Trump votes. JD Vance, Trump’s VP pick, is also pro-crypto.
Notably, Pennsylvania is a battleground state and one that could help decide the Trump vs. Harris race to the White House.
Pennsylvania has become the latest state to enact laws aimed at providing some regulatory clarity on digital assets with the new Bitcoin Rights Bill. State legislatures and governors are increasingly taking action to set guidelines for the US crypto industry.
This move comes amidst prevailing uncertainty at the federal level over crypto regulation and the appropriate federal agencies responsible for enforcing fundamental investment rules in the still-developing $2 trillion digital asset market.
Pennsylvania Leads the Way with Bipartisan Bitcoin Rights Bill
The Pennsylvania House of Representatives has passed House Bill 2481, also known as the Bitcoin Rights bill. It establishes protections for resident rights to self-custody digital assets, allows the use of Bitcoin payments, and clarifies the taxing of Bitcoin transactions.
The bill saw considerable bipartisan support, with a convincing majority of 176 to 26 votes. Voting on the bill included 76 Democrats and unanimous support from the 100 Republican members.
The bill, which now heads to the Republican-led Pennsylvania Senate after the upcoming election, would be sent to Governor Josh Shapiro if approved.
https://twiter.com/Terrence_STR/status/1849500958952390847
The Bitcoin advocacy group Satoshi Action Fund drafted the bill to better educate lawmakers on the inner workings of the blockchain and Bitcoin. SAF has been instrumental in helping to craft and advance identical legislation in 20 other states. Four of them have already become law: Oklahoma, Louisiana, Montana, and Arkansas.
Its primary mission is to promote Bitcoin at the state level and push lawmakers toward setting clear regulations for crypto. It’s something the federal government has yet to do to normalize it as a transaction method.
Can Pennsylvania’s Crypto Bill Bridge the Political Divide?
While some state statutes relating to financial instruments for small investors are controversial, federal authority over means of payment often preempts state law. The federal government has yet to weigh which digital currencies, beyond Bitcoin and Ethereum, are securities. Also they need to check which fall within the disclosure requirements mandated by the SEC.
A separate federal agency, the Commodity Futures Trading Commission, regulating cryptocurrencies as commodities, applies a lighter touch than other regulatory bodies. Recently, its Chair Behnam urged Congress to act on crypto regulations and election betting laws, highlighting gaps in current frameworks at the SIFMA annual meeting.
This crypto regulation has become a highly political issue in this election year. Republicans—including their presidential nominee, former President Donald Trump—are pushing for tighter regulations. These should appeal to perhaps 50 million Americans who believe the Biden Administration’s strict regulatory approach has stifled innovation.
Exactly in this state, a pro-Bitcoin Political Action Committee called Bitcoin Voters PAC recently created a campaign ad for Trump.
Republican bill’s sponsor, and a long-time Bitcoin investor Rep. Mike Cabell, said:
“In such polarizing times, it is great to see both sides of the aisle come together to further innovation and prioritize security for Pennsylvanians who own and transact with cryptocurrency.”
Crypto ownership is hot in Pennsylvania, with 1.5 million residents holding some form of digital asset.
Lawmakers Bridge Divide, Embracing Bitcoin Rights
Pennsylvania stands out as the only state with a split legislature. That means no single party has full control, which requires bipartisan support for bills to advance.
The strong bipartisan reception of the Bitcoin Rights bill in the Democrat-led lower chamber, has backing from Republicans and, gives hope to Cabell for another successful outcome.
Cabell remarked:
“A bill focused on the right to financial freedom should have bipartisan support. The 26 votes against it came from members who either lack a solid understanding of blockchain technology or have concerns about Bitcoin’s environmental impact.”
Teuta
Teuta is a seasoned writer and editor with over 15 years of experience in macroeconomics, technology, and the cryptocurrency and blockchain industries. Starting her career in 2005 as a lifestyle writer for Cosmopolitan in Croatia, she expanded into covering business and economy for several esteemed publications like Forbes and Bloomberg. Influenced by figures like Don Tapscott and Bruce Dickinson, Teuta embraced the blockchain revolution, believing crypto to be one of humanity’s most crucial inventions. Her fintech involvement began in 2014, focusing on crypto, blockchain, NFTs, and Web3. Known for her excellent teamwork and communication skills, Teuta holds a double MA in Political Science and Law, enjoys punk rock, chablis, and has a passion for shoes.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Denmark is set to pioneer an unprecedented tax reform by introducing a tax on unrealized capital gains for cryptocurrencies, starting January 1, 2026. This bold move aims to integrate cryptocurrencies such as Bitcoin into the existing financial taxation framework, treating them similarly to other investment assets.
The Tax Law Council has recommended this tax to apply to future acquisitions and cryptos acquired as far back as Bitcoin’s inception in January 2009.
Denmark To Introduce Tax on Crypto Unrealized Gains
According to the press statement, Denmark will impose a 42% tax on unrealized capital gains for all crypto assets. This crypto tax will apply to assets like Bitcoin, which are not backed by any physical assets or fiat currencies. Consequently, the law if passed will bring these digital assets under the same taxation rules as traditional investments.
The government intends to align the crypto taxation with the existing rules for other investment types, such as stocks and bonds.
Moreover, the new tax policy will affect crypto purchased as far back as the genesis block of Bitcoin in 2009. Hence, anyone holding cryptocurrencies will be subject to this 42% tax rate on unrealized gains, regardless of whether they sell their holdings.
Tax Minister Rasmus Stoklund expressed support for the developments stating,
“Throughout recent years, there have been examples of Danes who have invested in crypto-assets being heavily taxed. That is why I am pleased that the Tax Council has today submitted some elaborate and up-to-date recommendations. The council’s recommendations can be a way to ensure more reasonable taxation of crypto investors’ gains and losses.”
Regulatory Challenges and Investor Impact
The introduction of this crypto tax will address the complexities of taxing digital assets. The decentralized nature of cryptocurrencies has made taxation difficult for both authorities and crypto holders. To solve this, Denmark plans to introduce additional regulatory measures.
The Danish government announced that starting in 2027, they will exchange data on Danish crypto investors internationally. They also plan to introduce a bill in early 2025 requiring crypto service providers to report customer transactions. This will help Denmark regulate approximately 300,000 Danes who own crypto-assets and curb potential tax evasion.
In addition, the government will allow investors offset losses from one crypto against gains in another, as well as gains on financial contracts. This approach will correct the current taxation system’s asymmetry, which heavily taxes investors on gains.
These developments coincide with Italy’s efforts to tighten its control over digital assets. Recently, Italy announced plans to increase its capital gains tax on cryptocurrencies, raising it from 26% to 42%. This change is part of Italy’s broader effort to boost government revenue by taxing profits from cryptocurrency investments.
Ronny Mugendi
Ronny Mugendi is a seasoned crypto journalist with four years of professional experience, having contributed significantly to various media outlets on cryptocurrency trends and technologies. With over 4000 published articles across various media outlets, he aims to inform, educate and introduce more people to the Blockchain and DeFi world. Outside of his journalism career, Ronny enjoys the thrill of bike riding, exploring new trails and landscapes.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
US Congressman French Hill, who serves as the Chairman of the House’s Subcommittee on Digital Assets, has provided a timeline for when the Stablecoin bill could be passed, suggesting that this could happen as early as year-end. Interestingly, the congressman also offered insights into the process for firing the US Securities and Exchange Commission (SEC) Chair Gary Gensler.
French Hill Raises Possibility Of Stablecoin Legislation Passing By Year-End
During an interview on the Thinking Crypto Podcast, the US Congressman suggested that the US House could pass the Stablecoin legislation by year-end. He added that if they don’t pass it this year, the stablecoin bill will be a top priority for his committee in the new year.
As to how soon it could happen in the new year, he explained that the second quarter was a realistic target since they will have to reintroduce the bill in the House and Senate because of the new US congress members following the November elections.
Therefore, French Hill noted that the bill’s reading would likely take place in the first quarter of the year, and then it could be passed in the second quarter. The US Congressman also revealed that they have laid the groundwork for the bill’s passage, having been in talks with several Senators.
There is optimism that the Stablecoin bill will become legislation by next year even if Congress doesn’t pass it this year. As CoinGape reported, the next US Congress could be the most pro-crypto ever, which could make the bill and other crypto regulations easily scale through.
Moreover, Donald Trump, who has declared his support for the crypto industry, is currently leading in the US presidential polls. This means the next US administration could take a more friendly approach to crypto. French Hill’s insights come amid Tether CEO Paolo Ardoino’s call for stable crypto regulations in the US.
Process For Firing Gary Gensler
French Hill also provided insights into how Donald Trump could fire US SEC Chair Gary Gensler. The former President promised to do so on day one if elected as the next President. Hill indicated that Trump firing Gensler isn’t straightforward, especially considering that Gensler’s term doesn’t expire until June 2026.
The US Congressman remarked that the courts aren’t clear on how Trump could do this, with the SEC being an independent agency. However, French Hill noted a common practice whereby Presidents, upon their inauguration, write officials like Gensler to consider resigning in place of a new political appointee. In such a situation, Gensler could step down as the SEC Chair but remain in the agency as a Commissioner.
French Hill stated that he doesn’t believe Gensler has done a good job as the SEC chair. He added that he hopes that either Donald Trump or Kamala Harris would replace the SEC Chair with someone who is pro-innovation and uses the agency’s power to offer exemptive reliefs to emerging industries like the crypto industry.
Boluwatife Adeyemi
Boluwatife Adeyemi is a well-experienced crypto news writer and editor who has covered topics that cut across DeFi, NFTs, smart contracts, and blockchain interoperability, among others. Boluwatife has a knack for simplifying the most technical concepts and making it easy for crypto newbies to understand. Away from writing, He is an avid basketball lover and a part-time degen.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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