AMERICA COMPETES ACT PASSES HOUSE WITHOUT DISASTROUS PROVISION ON CRYPTO

The U.S.House of Representatives recently passed the America Creating Opportunities for Manufacturing Pre-Eminence in Technology and Economic Strength (America COMPETES) Act of 2025, a sweeping piece of legislation designed to bolster American economic competitiveness, particularly in the face of growing competition from China.While the Act encompasses a wide range of provisions aimed at strengthening supply chains, boosting domestic manufacturing, and investing in scientific research, it was a particular section related to cryptocurrency that drew significant attention and concern.Initially, the proposed language regarding the Treasury Secretary's authority over crypto firms sparked widespread criticism from industry experts and privacy advocates alike, who feared it would grant unchecked surveillance powers without proper oversight or public input. In a vote on Friday, the House of Representatives passed the America COMPETES Act mostly along party lines. The provision originally proposed by Connecticut Representative Jim Himes would seemingly have allowed the Treasury Secretary to have fewer limits on surveilling financial institutions with suspected transactions connected toThe crypto community breathed a collective sigh of relief when the final version of the bill passed without this controversial measure, averting what many considered a potential disaster for the digital asset space. America COMPETES Act passes House without 'disastrous' provision on crypto A provision originally included in the bill had critics saying the Treasury Secretary would not have had limits on surveilling crypto firms suspected of illicit transactions, nor open the matter to include public feedback.This article delves into the details of the America COMPETES Act, exploring the specific provision that caused such alarm, examining the reasons for its removal, and analyzing the broader implications for the future of cryptocurrency regulation in the United States.

Understanding the America COMPETES Act

The America COMPETES Act of 2025 (H.R. 4521) is a multifaceted bill intended to enhance U.S. economic strength and global competitiveness. Posted by u/wefap - 1 vote and no commentsIt focuses on several key areas:

• Boosting Semiconductor Production: The Act aims to increase domestic production of semiconductor chips, addressing supply chain vulnerabilities and reducing reliance on foreign manufacturers. America COMPETES Act passes House without disastrous provision on crypto By Cointelegraph Posted on Febru By Admin No Comments on America COMPETES Act passes House without disastrous provision on crypto By CointelegraphThis is achieved through significant investments in research, development, and manufacturing incentives.
• Strengthening Supply Chains: Recognizing the importance of resilient supply chains, the legislation seeks to bring more manufacturing back to the United States and diversify sourcing options to mitigate disruptions.
• Investing in Research and Innovation: The Act allocates substantial funding to scientific research and development, particularly in emerging technologies, to foster innovation and maintain America's technological edge.
• Countering Anti-Competitive Practices: A significant portion of the bill is dedicated to addressing anti-competitive actions by the People's Republic of China (PRC), aiming to level the playing field for American businesses.
• Supporting Labor Standards and Human Rights: The Act also includes provisions to ensure strong labor standards and protect human rights in global supply chains.

This comprehensive approach is designed to ensure that the United States remains a leader in innovation, manufacturing, and trade in the 21st century. Today, the U.S. House of Representatives passed the America COMPETES Act. This bipartisan legislation will increase U.S. production of semiconductor chips, strengthen the supply chain to make more goods in America, and invest in scientific research and new technologies, while supporting strong labor standards and human rights. It includes Rep. Madeleine Dean s Combatting Wildlife TraffickingThe bill's passage reflects a bipartisan recognition of the need to address these critical issues, although the specific details and potential impacts of certain provisions remain subjects of ongoing debate.

The Controversial Crypto Provision: A Deep Dive

The initial version of the America COMPETES Act contained a provision that sparked significant controversy within the cryptocurrency community.Proposed by Representative Jim Himes of Connecticut, this provision would have granted the Treasury Secretary expanded authority to impose ""special measures"" on financial institutions, including crypto firms, suspected of illicit financial activities. Another must-pass bill, another rushed policy that severely damages the privacy and constitutional rights of cryptocurrency users. We ve just seen language in the America COMPETES Act of 2025 (see page 1482) a bill ostensibly about economic competitiveness with China that would strip all administrative procedures and safeguards from the imposition of so-called special measuresThe concern stemmed from the perceived lack of procedural safeguards and public input in the decision-making process.

Here's a breakdown of the key issues:

• Expanded Surveillance Powers: Critics argued that the provision would have allowed the Treasury Secretary to surveil crypto firms with minimal oversight, potentially violating the privacy rights of users.
• Lack of Transparency: The absence of a requirement for public notice and comment periods raised concerns about the potential for arbitrary or politically motivated actions.
• Broad Definition of ""Financial Institution"": The vague definition of ""financial institution"" could have encompassed a wide range of entities within the crypto ecosystem, including exchanges, custodians, and even individual developers.
• Potential for Abuse: Opponents feared that the expanded authority could be used to stifle innovation and unfairly target the cryptocurrency industry.

Jerry Brito, Executive Director of Coin Center, a leading cryptocurrency advocacy group, described the provision as ""disastrous not just for cryptocurrency but for privacy and due process generally."" He argued that it would have stripped away crucial administrative procedures and safeguards, leaving the crypto industry vulnerable to unchecked government power.

Understanding ""Special Measures""

The term ""special measures"" refers to actions that the Treasury Department can take under Section 311 of the USA PATRIOT Act to combat money laundering and terrorist financing. Business, Economics, and Finance. GameStop Moderna Pfizer Johnson Johnson AstraZeneca Walgreens Best Buy Novavax SpaceX Tesla. CryptoThese measures can include:

• Requiring financial institutions to keep records of certain transactions.
• Requiring financial institutions to report certain transactions.
• Prohibiting or conditioning certain transations involving a jurisdiction, institution, or type of account deemed to be of ""primary money laundering concern.""

While these measures are intended to protect the financial system from illicit activities, critics of the crypto provision argued that they could be disproportionately applied to the cryptocurrency industry, given the perceived association between digital assets and illicit finance.

Why the Provision Was Removed

The intense backlash from the cryptocurrency community, coupled with concerns raised by privacy advocates and some members of Congress, ultimately led to the removal of the controversial crypto provision from the final version of the America COMPETES Act. America COMPETES Act passes House without disastrous provision on crypto . Buy, Sell, Trade Bitcoin with Credit Card 100 Cryptocurrencies @ BEST rates from multiple sources, Wallet-to-Wallet, Non-Custodial!Several factors contributed to this outcome:

• Industry Advocacy: Cryptocurrency advocacy groups, such as Coin Center and the Blockchain Association, actively lobbied against the provision, raising awareness of its potential negative consequences.
• Public Pressure: The widespread criticism of the provision on social media and in the press put pressure on lawmakers to reconsider their support.
• Congressional Concerns: Some members of Congress, particularly those who are supportive of the cryptocurrency industry, expressed concerns about the provision's potential impact on innovation and privacy.
• Negotiations and Compromise: The final version of the bill likely reflected negotiations and compromises between different factions in Congress, leading to the removal of the most controversial elements.

The removal of the provision represents a significant victory for the cryptocurrency industry and demonstrates the power of advocacy and public awareness in shaping legislation. America COMPETES Act passes House without 'disastrous' provision on crypto 风险提示：央行等十部委发布《关于进一步防范和处置虚拟货币交易炒作风险的通知》,请读者提高风险意识，理性看待区块链。It also highlights the growing recognition among policymakers of the importance of striking a balance between protecting national security and fostering innovation in the digital asset space.

Implications for the Crypto Industry

The passage of the America COMPETES Act without the ""disastrous"" crypto provision has several important implications for the cryptocurrency industry:

• Preservation of Privacy Rights: The removal of the provision safeguards the privacy rights of cryptocurrency users by preventing unchecked government surveillance.
• Continued Innovation: The absence of overly burdensome regulations allows the cryptocurrency industry to continue to innovate and develop new products and services.
• Increased Regulatory Scrutiny: While the controversial provision was removed, the cryptocurrency industry can still expect increased regulatory scrutiny from government agencies, such as the Securities and Exchange Commission (SEC) and the Treasury Department.
• Ongoing Debate: The debate over cryptocurrency regulation is far from over.Lawmakers will continue to grapple with how to balance the risks and benefits of digital assets, and the industry must remain engaged in the policy-making process.

The future of cryptocurrency regulation in the United States remains uncertain, but the outcome of the America COMPETES Act demonstrates that the industry has the power to influence policy and protect its interests.

What's Next for Crypto Regulation?

Despite this victory, the crypto industry must remain vigilant and proactive in shaping the future of regulation. Article:Here are some key areas to watch:

1. SEC Enforcement Actions: The SEC has been actively pursuing enforcement actions against cryptocurrency companies that it believes are violating securities laws. Posted by u/[Deleted Account] - 3 votes and 1 commentThis trend is likely to continue, and the industry must be prepared to defend itself against these actions.
2. Treasury Department Guidance: The Treasury Department is expected to issue further guidance on the application of existing regulations to the cryptocurrency industry. A piece of legislation aimed at addressing supply chain issues to keep the U.S. economy and businesses competitive has passed the House of Representatives without a provision many in the crypto space had criticized for giving the Treasury Secretary authority to shut down exchanges.This guidance could have a significant impact on how the industry operates.
3. Congressional Legislation: Congress is considering several pieces of legislation related to cryptocurrency, including bills that would establish a regulatory framework for stablecoins and clarify the tax treatment of digital assets.
4. International Cooperation: International cooperation on cryptocurrency regulation is also increasing. This bill passed the house by a vote of . The America COMPETES Act of 2025 aims to strengthen the competitiveness of the U.S. economy and U.S. businesses, and counters anti-competitive actions taken by the People s Republic of China (PRC).The Financial Action Task Force (FATF), an international body that sets standards for combating money laundering and terrorist financing, has issued guidance on how to regulate cryptocurrencies.

The cryptocurrency industry must actively engage with regulators and policymakers to ensure that regulations are fair, balanced, and promote innovation. A provision originally included in the bill had critics saying the Treasury Secretary would not have had limits on surveilling crypto firms suspected of illicit transactions, nor open the matter to include public feedback. A piece of legislation aimed at addressing supply chain issues to keep the U.S. economy and businesses competitive has passed the [ ]This includes participating in public consultations, providing feedback on proposed regulations, and educating policymakers about the benefits of digital assets.

The Broader Economic Implications of the America COMPETES Act

Beyond the crypto-specific provisions, the America COMPETES Act aims to address several critical economic challenges facing the United States.The bill's focus on bolstering semiconductor production, strengthening supply chains, and investing in research and innovation has significant implications for the overall economy.

• Increased Competitiveness: By investing in key industries and technologies, the Act aims to make the United States more competitive in the global marketplace.
• Job Creation: The bill is expected to create jobs in manufacturing, research, and other sectors.
• Reduced Reliance on Foreign Suppliers: By bringing more manufacturing back to the United States, the Act aims to reduce reliance on foreign suppliers and mitigate supply chain vulnerabilities.
• Economic Growth: The investments in research and innovation are expected to drive economic growth and improve the standard of living for Americans.

However, some economists have raised concerns about the potential for the Act to increase government spending and exacerbate inflation. 2.3M subscribers in the ethtrader community. Welcome to /r/EthTrader, a 100% community driven sub. Here you can discuss Ethereum news, memesThey argue that the bill's investments should be carefully targeted and that its costs should be offset by spending cuts elsewhere.

The Role of Government Investment

The America COMPETES Act reflects a growing consensus among policymakers that government investment is necessary to address critical economic challenges and maintain America's competitive edge.This view contrasts with the more laissez-faire approach that has prevailed in some quarters in recent decades.

Proponents of government investment argue that it can:

• Correct market failures, such as underinvestment in research and development.
• Promote long-term economic growth.
• Address social challenges, such as inequality and climate change.

Critics of government investment argue that it can:

• Distort markets and lead to inefficient resource allocation.
• Create opportunities for corruption and cronyism.
• Increase government debt and burden future generations.

The debate over the role of government investment is likely to continue as policymakers grapple with how to address the economic challenges facing the United States.

Conclusion: A Sigh of Relief, But Vigilance Required

The America COMPETES Act, passed by the House of Representatives, initially threatened to impose overly restrictive regulations on the cryptocurrency industry. A piece of legislation aimed at addressing supply chain issues to keep the U.S. economy and businesses competitive has passed the House of Representatives without a provision many in theThe proposed provision granting the Treasury Secretary broad surveillance powers without adequate safeguards triggered significant opposition.Fortunately, due to concerted efforts by industry advocates, privacy proponents, and concerned members of Congress, the final version of the Act was passed without this controversial measure.This outcome represents a notable victory for the cryptocurrency community, preserving privacy rights and fostering continued innovation. In a vote, the U.S. House of Representatives passed the America COMPETES Act with a modified version of a provision which would have given the Treasury Secretary additional authority toHowever, it's crucial to recognize that this is not the end of the story.The digital asset space remains under increased regulatory scrutiny, and ongoing debates about the appropriate balance between security, innovation, and individual liberties will undoubtedly continue. The House will consider H.R. 4521, the America Creating Opportunities for Manufacturing Pre-Eminence in Technology and Economic Strength (America COMPETES) Act of 2025 a bold legislative package that makes transformational new investments in research, innovation and American manufacturing that will ensure that America can outcompete anyThe cryptocurrency industry must remain vigilant, proactive, and engaged in the policy-making process to ensure a future where digital assets can thrive within a clear and sensible regulatory framework. America COMPETES Act Would Be Disastrous For Bitcoin Cryptocurrency And More. Jerry Brito, Executive Director of Coin Center expressed: Included in the America COMPETES Act just introduced in the House, and which will very likely pass in some form, is a provision that would be disastrous not just for cryptocurrency but for privacy and due process generally.The key takeaways are that advocacy works, staying informed is paramount, and the conversation surrounding crypto regulation is just beginning.