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GOP Infighting Causes Delay in U.S. Crypto Bills, Anticipated Passage in 2024, State Key Legislators
In the intricate landscape of U.S. cryptocurrency legislation, the tug-of-war between Republicans' leadership factions has thrown a wrench into the anticipated approval process. Notably, Republican Representative French Hill and Democratic Representative Jim Himes foresee pivotal future floor votes as instrumental in swaying the Democrat-controlled Senate. This political chess match, however, has shifted the timeline for passing digital asset bills to 2024, grappling with challenges in a Senate where Democrats hold sway.
House's Digital Assets Chair Foresees 2024 Timeline for Major Crypto Bills
Chairman of the House Financial Services Committee's subcommittee on digital assets, Rep. French Hill (R-Ark.), indicated that the House's contemplation of two significant crypto bills— one aimed at regulating U.S. stablecoin issuers and the other establishing a comprehensive framework for crypto markets—has likely been deferred to "early 2024." Recent internal discord among House Republicans, particularly over the appointment of a new speaker, has created delays, as revealed by Hill during a Blockchain Association event in Washington on Thursday.
Republican Setback and Senate Prospects
The recent House Republican turmoil, entangling key crypto negotiator Rep. Patrick McHenry (R-N.C.) as a temporary stand-in speaker, obstructed lawmakers' access to crucial floor time needed for advancing the legislation. Sen. Cynthia Lummis (R-Wyo.), speaking at the same event, acknowledged the setback, expressing optimism that progress on the stablecoin bill, in particular, might unfold in 2024.
Democrat Involvement and Industry Perception
Rep. Jim Himes (D-Conn.), an influential figure in House negotiations for both bills, emphasized the need for the industry to counter prevailing sentiments among House Democrats and U.S. Securities and Exchange Commission Chair Gary Gensler, a vocal critic of the crypto sector. Himes suggested that aligning with the views of influential figures like Rep. Maxine Waters (D-Calif.), who has withdrawn support, could influence a positive response from the House and subsequently capture the attention of a Democratic Senate.
Senate Challenges and Optimistic Signals
Himes acknowledged the challenges in the Senate, where certain Democrats, including Sen. Sherrod Brown (D-Ohio), remain skeptical about cryptocurrencies. He hinted at a potential path forward, emphasizing the necessity of a robust bipartisan vote in the House to stimulate interest in the Senate.
Sen. Lummis, a committee member facing the crypto views of Brown's banking committee, acknowledged the committee's resilience but noted that recent proposals by the U.S. Department of the Treasury on crypto illicit-finance policies could pave the way for negotiations and potentially sway Senate Democrats.
Overcoming Industry Setbacks
Rep. Hill argued that recent events, such as the FTX implosion and Binance's significant settlement and criminal conviction, should motivate lawmakers to pursue legislation rather than discourage them. He stressed that each instance of misconduct reinforces the need for proper regulations, asserting that a lack of regulatory frameworks favors illicit finance.
Legislative Hurdles and Future Outlook
Despite potential House approval in 2024, the crypto bill faces the hurdles of Senate approval and the presidential signature. In practical terms, this may involve integrating it into a more comprehensive package and attaching it to must-pass legislation, such as a spending bill.
Sen. Kirsten Gillibrand (D-N.Y.), a collaborator with Sen. Lummis on crypto legislation, cautioned that the legislative process takes time. She urged the industry to continue educating the public, emphasizing the need to broaden awareness about cryptocurrency beyond the industry circle.
In conclusion, the intricate dance of political dynamics, internal conflicts, and regulatory challenges continues to shape the trajectory of U.S. cryptocurrency legislation, with 2024 emerging as a pivotal year for potential breakthroughs.
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