On October 23, the Pennsylvania House of Representatives passed HB-2481, a significant step towards establishing a comprehensive regulatory framework for the protection of self-custody and crypto payments. The bill aims to exempt digital assets from additional taxation and assert the right to operate a node. With a bipartisan vote of 176 to 26, the bill now awaits approval in the Pennsylvania Senate and the signature of Governor Josh Shapiro before it can become law.
The Bitcoin advocacy group, Satoshi Action Fund, takes credit for crafting HB-2481. Dennis Porter, co-founder and spokesperson for the group, expressed his satisfaction with the bill’s passage, as crypto advocacy groups in the United States continue to push for clear and well-defined regulations. However, industry leaders have raised concerns about the US lagging behind other jurisdictions, such as the European Union, that have already established regulatory frameworks.
Tether CEO Paolo Ardoino believes that crypto regulations in the US will improve following the 2024 election. He criticized US financial regulators for lacking a cohesive crypto policy and suggested that they have “dropped the ball” in this regard. Ongoing disagreements among different agencies regarding the classification of digital assets have created uncertainty around the status of this emerging asset class in the United States, leading to an increasing number of crypto companies relocating to more favorable jurisdictions like Japan, Singapore, Australia, the United Kingdom, and Switzerland.
In 2023, Ripple CEO Brad Garlinghouse issued a warning about US-based crypto companies already starting to relocate due to regulatory uncertainty. This trend highlights the urgent need for clarity and consistency in the US crypto regulatory landscape. Rostin Behnam, the Chairman of the Commodity Futures Trading Commission (CFTC), acknowledged the agency’s limitations in digital asset policy at a recent meeting. However, he expressed optimism that this situation would change with the next administration.