A Missed Opportunity
The U.S. Congress recently released the National Defense Authorization Act for 2024, but unfortunately, it did not include any provisions related to cryptocurrency or blockchain. This is a missed opportunity for the crypto industry as it could have provided much-needed regulations and guidance in this rapidly growing field.
Many in the crypto community expressed their disappointment with this omission. Katherine Kirkpatrick Bos, a crypto Chief Legal Officer, stated that she was “disappointed but not surprised” by the lack of crypto provisions in the bill. She also expressed pessimism about the prospects of crypto legislation in the near future.
An Excluded Amendment
In addition to excluding any crypto provisions, the new legislation also left out an important amendment proposed last summer by Senators Kirsten Gillibrand, Robert Marshall, Cynthia Lummis, and Elizabeth Warren. This amendment would have required regulators to set examination standards for financial institutions involved in crypto activities and provided recommendations on anonymity-enhancing crypto assets.
Cody Carbone, Vice President of Policy for the Chamber of Digital Commerce, highlighted the importance of adding legislation to “must-pass” bills like the National Defense Authorization Act. However, with Congress set to go on holiday break soon, time is running out for any additional crypto-related legislation to be passed before they reconvene next year.
Terror Financing Concerns
In addition to the exclusion of the crypto amendment, Congress also left out a terror-financing bill called the Financial Technology Act. This bipartisan bill aimed to create a working group focused on combating terrorism and illicit financing.
However, other senators have recently proposed a bill that would apply sanctions to foreign parties facilitating financial transactions with terrorists. This comes in response to recent attacks by Hamas and aims to expand financial sanctions to cover all terrorist organizations, including Hamas.
The Road Ahead
As we enter 2024 and approach the Presidential election, all eyes are on the crypto industry. There is a growing recognition of the need to effectively legislate and regulate this space. The current moment calls for updated regulations to address the challenges posed by fraudsters, criminals, and terrorists.
Hot Take: Congress Misses Opportunity to Regulate Crypto
Despite growing interest and discussions around regulating the crypto industry, the U.S. Congress missed an important opportunity to include crypto provisions in the National Defense Authorization Act for 2024. This omission is disappointing for those seeking clarity and guidance in the rapidly evolving crypto landscape. With time running out before Congress goes on holiday break, it remains uncertain whether any additional crypto legislation can be passed in the near future. As we move forward, it becomes increasingly clear that regulations need to catch up with the current moment to address the challenges posed by fraud, crime, and terrorism in the crypto space.
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