Regulation
Congressman McHenry envisions a bipartisan cryptocurrency bill by 2025 with clear rules
Cryptocurrency enthusiasts, are you ready?! A major change may be on the horizon for the industry.
Representative Patrick McHenry, a key figure in shaping cryptocurrency legislation, expects to have a digital assets bill in place within the next year. But is it a safe bet?
Read on to explore the growing momentum behind the Financial Innovation and Technology for the 21st Century Act (FIT21) and the potential challenges that may still arise.
It hasn’t been an easy journey
Despite opposition from the White House, many House Democrats support the bill. McHenry believes this momentum will cause the bill to become law by 2025. He emphasized the need for comprehensive regulation of cryptocurrencies.
“Cryptocurrency policy is inevitable, just as cryptocurrency law is inevitable,”
Building a crypto legacy
As the outgoing chair of the House Financial Services Committee, McHenry is determined to leave a strong legacy in the cryptocurrency industry. He described FIT21 as a “consensus product” of the Chamber, a significant achievement that should not be overlooked.
McHenry’s confidence comes from strong bipartisan support, which he expects will continue into the next session of Congress if needed. He believes this consensus will help when the Market Structure Law is passed. The legislation also aims to regulate stablecoin issuers, bringing much-needed clarity and stability to the cryptocurrency market.
It’s a race against time
With his retirement at the end of 2024, McHenry is committed to advancing legislation before he leaves. He acknowledged the complexities of the Senate, but remains confident of getting the bill to President Joe Biden’s desk. McHenry is exploring all possible legislative strategies to advance the cryptocurrency bill, with fellow Rep.
Tom Emmer suggests the lame duck session as a prime opportunity to pass legislation. This session is a transition period when outgoing lawmakers are more likely to finalize decisions on pending bills.
Challenges and criticisms
However, the road to cryptocurrency legislation is not without obstacles. A similar promise was made last year at the Consensus event, where McHenry pointed out that internal conflicts among House Republicans pose a significant challenge due to unanticipated leadership issues.
Adding to the urgency, the Securities and Exchange Commission (SEC) recently issued a new alert on crypto scams. Lawmakers and crypto industry executives met in Austin, Texas to discuss the future of digital assets, highlighting ongoing regulatory challenges and the urgent need for clear, enforceable crypto laws to protect investors and support industry growth .
Will 2025 be the year cryptocurrencies gain regulatory clarity?