The U.S. House of Representatives passed legislation that would abolish the debt limit to prevent the United States from defaulting.
Debt limit debates that have flared up for about a week ended with yesterday’s vote.
The Biden government succeeded in persuading the Republicans after lengthy negotiations, and the law increasing the debt limit was passed by 314 votes to 117.
In a written statement after the vote, Biden asked the Senate to approve the law as soon as possible.
“Tonight, the House of Representatives took a critical step to prevent the first default and protect our country’s hard-earned and historic economic recovery.
I urge the Senate to pass the bill as soon as possible so that I can sign it and our country can continue to build the strongest economy in the world.”
After the law approved in the House of Representatives, Asian markets were mostly opened with buyers. While US futures were buyers with small premiums, Bitcoin slumped to $26600.
Despite the pullback in Bitcoin, we observe that some major altcoins (LTC) are positively diverging.
Janet Yellen, in her last letter to the parliament, stated that if the law is not approved by June 5, the Treasury will default. The current stop of the law will be the Senate. If the Senate approves the law, it will go into effect with Biden’s signature and will suspend the US Treasury’s debt limits until January 1, 2025.
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