Sens. Chuck Schumer, Cynthia Lummis, and Tim Scott are optimistic that legislation pertaining to cryptocurrencies could pass through Congress this year. Here are the details they shared.
At the beginning of this month, Senate Majority Leader Chuck Schumer (D-N.Y.) addressed an audience at a “Crypto4Harris” virtual gathering, expressing his intention to guide a cryptocurrency bill through Congress and attain President Joe Biden’s approval by the end of 2024. This ambitious goal initially seems challenging to achieve.
For several years, the U.S. cryptocurrency industry has been advocating for specific legislative measures that would explicitly authorize businesses to develop and distribute tokens, manage blockchain technologies, and operate without the fear of regulatory interference. The most progress made so far has been the Financial Innovation and Technology for the 21st Century Act, a House bill endorsed by Financial Services Committee Chair Patrick McHenry (R-N.C.). Given the limited legislative days remaining in the year, the likelihood of such legislation advancing in the Senate appears minimal. Let’s explore the possible actions and hurdles that could influence this outcome.
Last week at the SALT Wyoming Symposium, Sens. Cynthia Lummis (R-Wyo.) and Tim Scott (R-S.C.) discussed a scenario for passing crypto legislation. They suggested that the most effective route would be through the Senate Agriculture Committee, focused on commodity laws. As noted, Sen. Debbie Stabenow (D-Mich.), chair of the committee, is already preparing legislation but has not yet introduced it.
If such a bill is approved by this committee, Lummis explained, it might become a “Christmas Tree bill,” where legislators attach additional amendments and provisions, potentially including elements like the SAFER Banking Bill, stablecoin regulations, and others.
However, advancing any legislation faces significant hurdles, notably the limited number of working days remaining in the current legislative year.
Lummis highlighted the scarcity of these days post-election during her talk at the SALT event, adding that much of this time will likely be needed for crucial bills such as the annual National Defense Authorization Act and budget-related laws.
It has been suggested that cryptocurrency regulations might be included in key legislative bills, as indicated by discussions following Senator Schumer’s speech and echoed by Scott in Wyoming.
“This is a chance to achieve a great deal in a short period, given the right motivation and incentives,” he articulated.
A core concern is whether legislative movements around cryptocurrency will a) lead to the introduction of a relevant bill in the Senate; b) advance beyond the committee stage; and c) be passed in the Senate. This could happen either through a standalone bill centered on cryptocurrency, as part of broader financial services legislation, or within critical must-pass bills.
Despite some bipartisan support for cryptocurrency in Congress, it remains to be seen if the issue will emerge as a priority amidst other pressing matters, such as the upcoming end of the fiscal year, which is likely to dominate the legislative agenda first.
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