BTC142: Bitcoin Policy Update Q3 2023 w/ Perianne Boring (Bitcoin Podcast)

Episode Summary

Executive Summary: The episode centers on Perry Ann Boring’s view that U.S. Bitcoin policy is at a turning point. She explains new federal legislation, why regulatory uncertainty is pushing innovation overseas, how a spot Bitcoin ETF is being blocked by the SEC, and why accounting changes, mining education, and presidential Bitcoin policies could materially improve adoption and market access.

Main Topics: Federal market structure legislation (Priority: 5/5): Boring breaks down the FIT for the 21st Century Act (H.R. 4763), which would establish a comprehensive regulatory framework for digital assets under the SEC and CFTC. She emphasizes that it has already cleared both House committees on a bipartisan basis, making it the furthest comprehensive crypto bill has ever advanced in Congress. Senate obstacles and legislative timing (Priority: 5/5): She contrasts the House progress with the Senate’s difficulty, especially the role of Senate Banking Chair Sherrod Brown. Because committee chairs control the agenda, she argues the bill may not move until a future Congress if Senate leadership remains opposed. SEC enforcement and regulatory uncertainty (Priority: 5/5): Boring argues that the SEC has become highly political and is regulating through enforcement rather than clear rules. She says this uncertainty hurts institutions, makes compliance difficult, and pushes U.S. innovation and capital overseas. Presidential Bitcoin policy proposals (Priority: 4/5): The conversation covers RFK Jr., DeSantis, Vivek Ramaswamy, and Tulsi Gabbard as examples of candidates with pro-Bitcoin positions. Boring highlights RFK Jr.’s proposals to eliminate Bitcoin capital gains taxes and to back U.S. debt instruments with Bitcoin and other hard assets. FASB accounting changes for Bitcoin (Priority: 4/5): She explains how FASB’s move toward fair-value accounting is a major victory because prior intangible-asset treatment distorted financial statements and discouraged corporate Bitcoin adoption. This change should improve transparency and make balance sheets more accurate. Bitcoin mining, energy policy, and public education (Priority: 4/5): Boring says the Chamber’s mining initiative has helped shift the narrative from Bitcoin being environmentally harmful to being a useful energy buyer and grid partner. She points to education and grassroots advocacy as the main tools for changing policymakers’ views. Spot Bitcoin ETF battle (Priority: 4/5): She says a spot Bitcoin ETF in the U.S. is inevitable, but the SEC has repeatedly changed standards and acted arbitrarily. Because of that, the issue is now in the courts, with the Grayscale case and broader congressional oversight pressure driving the process.

Key Arguments: Clear legal definitions are necessary because today Bitcoin and other digital assets are governed largely by agency speeches, statements, and shifting enforcement priorities rather than stable law. The FIT for the 21st Century Act would help institutions participate by providing regulatory clarity, consumer protections, segregation of customer funds, and clearer exchange oversight. The Senate is the main bottleneck; without a change in committee leadership or political pressure, comprehensive crypto legislation may not pass before the current Congress ends. The SEC’s posture is politically driven and inconsistent with its role as a disclosure regulator, especially when it treats Bitcoin differently from other commodities. A spot Bitcoin ETF will eventually be approved, but the SEC has delayed it by continuously moving the goalposts and demanding Bitcoin-specific requirements not applied to other commodity ETFs. FASB’s accounting reform is important because the old treatment made corporate Bitcoin holdings look economically worse than they were and discouraged public companies from adopting Bitcoin treasury strategies. Bitcoin mining education has successfully shifted many undecided policymakers toward support, especially when they are shown data on grid flexibility, energy security, and industrial use cases. Pro-Bitcoin presidential candidates can still influence policy through executive authority, agency direction, tax interpretation, and Treasury action even without Congress passing a new law immediately. Bitcoin is being framed increasingly as an issue of economic competitiveness, national security, and technological leadership, not just a niche financial asset. The Bitcoin community is becoming more politically sophisticated, but still needs more coordinated lobbying, education, and direct engagement with elected officials. The U.S. should treat Bitcoin policy the way it treated internet policy decades ago: as a technology to be encouraged, not overtaxed or prematurely constrained.

Data Points: Chamber founding year: 2014 - The Chamber of Digital Commerce was founded in 2014 and is described as the first U.S. trade association representing the industry. Chamber anniversary: 9 years - Boring says the Chamber recently celebrated its nine-year anniversary. House bill number: H.R. 4763 - The FIT for the 21st Century Act, also called the market structure bill, is identified by this number. House committee approvals: 2 committees - The bill passed markup out of both the House Financial Services Committee and House Agriculture Committee. Legislative session length: 2 years - She notes that each Congress lasts a two-year session. Senate timeline risk: until 2025 - She says the bill may not get through until the next Congress if the Senate blockade remains. Initial spot Bitcoin ETF filing year: 2013 - She says the Winklevoss twins filed the first spot Bitcoin ETF application in 2013. ETF attempts: dozens - Boring says there have been dozens of spot Bitcoin ETF attempts over the last 10 years. ETF study interviews: 30+ market participants - She references the Chamber’s Crypto Conundrum paper, which included interviews with more than 30 participants. Chamber mining membership: 20+ Bitcoin mining companies - The Chamber’s mining initiative now represents over 20 mining companies. U.S. hash rate represented: over 50% - Those member companies are said to generate over half of the Bitcoin network hash rate in the United States. FASB advocacy outreach: 50+ companies - The Chamber drove more than 50 companies to contact FASB about accounting treatment changes. Bitcoin tax guidance year: 2014 - Boring cites the IRS guidance that classified Bitcoin as property in 2014. New York anti-mining bill: last year - She says New York passed the first state anti-Bitcoin mining bill the prior year. New York legislature debate length: longest in decades - She says the resulting debate in New York became the longest in the state legislature in decades.

Pivotal Quotes: "We have never had comprehensive legislation make it this far through the legislative process ever." — Perry Ann Boring: Describing the significance of the FIT for the 21st Century Act advancing through House committees. "The SEC has been arbitrary and capricious." — Perry Ann Boring: Explaining why the SEC’s repeated spot Bitcoin ETF denials are being challenged in court. "Bitcoin can play a role in enhancing our energy security." — Perry Ann Boring: Summarizing the shift in the mining and energy-policy narrative.

Implications: U.S. Bitcoin policy may hinge on Congress, courts, and the 2024 election. Clearer laws, fair accounting, and ETF approval could unlock institutional adoption; continued gridlock likely keeps innovation offshore and uncertainty high.