Elections: Rapporteur of the PL on cryptocurrency regulation in Brazil is not reelected

The draftsman of the regulation bill (PL) de  cryptocurrencies --nbsp ;in Brazil, Expedito Netto (PSD-RO), obtained 20,054 votes and was not re-elected to the Chamber of Deputies in the elections on Sunday (2).

The loss of the deputy's mandate for the next legislature casts doubt on the path that the proposal will follow. However, the deputy may speed up the progress and approval of the project until the end of the year in an attempt to build a campaign platform for future elections.

Recently, the CVM (Brazilian Securities and Exchange Commission) expressed its intention to collaborate with the project.

controversial clause

In the month of July, Netto was also the rapporteur who made changes to    proposal from the Senate. In the Senate's original text, two controversial clauses were withdrawn by the parliamentarian, the mandatory CNPJ for exchanges to operate in Brazil and segregation between their and customers' assets.

Both devices were heavily criticized by foreign exchanges. As main arguments, the companies claimed that it would make it difficult to operate in the country and create a market reserve for national exchanges.

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At the end of July. o  Binance CEO Changpeng Zhao posted a series of tweets on his personal social media account criticizing the segregation of wallets for cryptocurrency exchanges.

“From our interactions, some countries want a segregated order book (liquidity). This is a BAD IDEA for a number of reasons. Great liquidity is one of the best Consumer Defense mechanisms. It protects against market manipulation, volatility and reduces liquidations.”

 

It was not clear whether CZ made a direct reference to the bill in progress in Brazil by not directly mentioning the country.

New regulation may be drafted in 2023

An anonymous source  reported  ao  Valor Econômico  that there is the possibility of other congressmen interested in the topic to develop new ones    legislations and rush to write another bill with less resistance to the market and among regulators.

In early September, Senator Carlos Portinho (PL-RJ) participated in a panel at the Blockchain Rio Festival e  said  preferring to “make a new project” in the face of the impasse to resolve the bottlenecks of the bill in progress.

Still to Valor, the director of ABCripto said that a    approval of the bill remains on the agenda for 2022 and that “regardless of the reelection of rapporteur Expedito Neto, there is still room for discussion and approval of the regulatory framework this year.”

Sought by Valor, Expedito Netto declined to comment on the matter.