Crypto Quill

As the U.S. Congress approaches its lame duck session, optimism is brewing around the potential advancement of key cryptocurrency bills. Representative French Hill, chair of the House digital assets subcommittee, expressed hope that two significant pieces of legislation could gain traction before the year concludes.

Key Bills in Focus

During a recent virtual appearance at DC Fintech Week, Hill highlighted the importance of the Financial Innovation and Technology for the 21st Century Act (FIT21) and a regulatory framework for stablecoins.

• FIT21 Bill:
  • Aims to enhance regulatory control for the Commodity Futures Trading Commission (CFTC).
  • Seen as a more crypto-friendly alternative to the Securities and Exchange Commission (SEC).
• Stablecoin Regulatory Framework:
  • Designed to provide clear guidelines for stablecoin operations.
  • Passed by the House Financial Services Committee last July.

Despite the House’s approval of these bills, both have faced hurdles in the Senate, stalling in the banking committee. Hill remains optimistic, stating, “What we now need to see in this lame duck is what’s in the realm of possibility.”

The Lame Duck Dynamics

A lame duck session occurs after an election but before the new Congress is seated. With elections scheduled for November 5, the current Congress will have a limited window to act on these bills. Hill noted that the outcome of the elections will significantly influence the direction of legislative efforts.

“All lame duck sessions take direction from who wins the top of the ticket,” he explained. This means that the political landscape could shift dramatically based on the election results, impacting the fate of the crypto legislation.

Legislative Priorities and Challenges

Hill pointed out that any movement on the crypto bills is also tied to the passage of other critical legislation, including the National Defense Authorization Act (NDAA). He suggested that this could present an opportunity for Chairman Patrick McHenry to attach financial services priorities to the NDAA, potentially paving the way for crypto regulations.

“If the current Congress isn’t successful in passing the crypto laws, then it’ll be a top priority going into the 119th Congress,” Hill added, indicating that the push for crypto regulation will continue regardless of the current session’s outcomes.

Industry Perspectives and Election Implications

The crypto industry is closely monitoring these developments, with CFTC Chair Rostin Behnam expressing frustration over the regulatory pause. He noted that the agency feels “handcuffed” amid the ongoing discussions and is hopeful for progress with a new president and Congress.

Tether CEO Paolo Ardoino also weighed in, stating that the U.S. is “dropping the ball” on crypto regulation. He expressed hope for “sensible crypto regulations” to pass, regardless of the election outcomes.

As the nation gears up for the elections, polls indicate a tight race between Democratic candidate Kamala Harris and Republican candidate Donald Trump. With all 435 House seats and 34 Senate seats up for grabs, the results could significantly influence the legislative agenda moving forward