US House Passes Legislation Allowing Corporations to Custody Bitcoin and Crypto, Overruling SEC Rule

I still don't quite understand why the SEC exists and why representatives in the chamber fight so hard to approve or disapprove anything related to Bitcoin. After all, Bitcoin doesn't need any kind of law to operate.

Bitcoin is decentralized and has been operating for over 14 years without any institution or government intervening. It's a OPEN network that people all over the world can use, but today there's a lot of noise behind it because some still wonder if they can control Bitcoin. I'm sorry to inform you, but they can't; they can control the people and companies that hold Bitcoin.

Information Source: Twitter

And here is where legislation comes in. After all, it was passed so that corporations like banks and other highly regulated financial institutions could have Bitcoin and cryptocurrencies in their portfolios without being scrutinized by the SEC for holding these decentralized assets.

This means that the legislation that would overturn the SEC rule preventing highly regulated financial firms from custodying Bitcoin and cryptocurrencies has passed the House of Representatives.

If this law passes in the Senate, it could have a significant impact on the crypto ecosystem, as it would open the door for traditional financial institutions, such as banks and brokerage firms, to offer Bitcoin and other cryptocurrency custody services.

For Bitcoin and the crypto ecosystem as a whole, this legislation could be seen as positive. Allowing regulated financial institutions to offer custody services can increase the legitimacy and adoption of cryptocurrencies, as well as attract institutional investors who were previously reluctant to enter the market due to the lack of regulated infrastructure.

However, as I mentioned above, Bitcoin is decentralized and does not need authorization or intervention from institutions or government to operate. Nevertheless, there are concerns about excessive regulation and loss of control over cryptocurrencies by individuals. Identification systems like the KYC Policy can undermine the rapid adoption of cryptocurrencies worldwide.

Ultimately, the impact of this law on Bitcoin and the crypto ecosystem will depend on how it is implemented and how financial institutions respond to it. It's important to closely monitor the future developments of this legislation to understand how it is received by the market and the crypto community.

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