Prospects for Crypto Legislation Delayed as U.S. House Speaker Race Continues
The race for a more permanent U.S. House speaker is ongoing, which could further postpone the progress of cryptocurrency legislation. Representatives Steve Scalise and Jim Jordan are in a tight race as House Republicans gather to determine if Scalise has enough votes. The uncertainty surrounding the speaker position has led to doubts about resolving crypto-related issues this week.
Temporary Speaker Patrick T. McHenry, who is supportive of the crypto industry and leads the House Financial Services Committee, will not be able to work on crypto bills until a permanent speaker is chosen. McHenry may have limited legislative powers during this period, with a focus on bills related to Israel and preventing a government shutdown.
Crypto Bills Await Action
Two crypto bills advanced out of McHenry’s committee in July and are awaiting a full House vote before being passed to the Senate. One bill aims to regulate stablecoins, while the other seeks to establish a comprehensive regulatory framework for cryptocurrencies. However, bringing up these bills at this time may not be ideal due to hyper-partisan tensions in Congress.
In the absence of a functioning House, there is a possibility that the Senate may take the lead on crypto legislation. If the House fails to resolve its internal issues, the dynamics of passing crypto-related bills may shift back to the Senate.
Potential Influence of Rep. Tom Emmer
Rep. Tom Emmer of Minnesota, who is vying for House Majority Leader, has been active in introducing crypto-related legislation. He proposed the Securities Clarity Act, which aims to create a new definition for tokens that exist between commodities and securities. Emmer has also expressed opposition towards central bank digital currencies (CBDCs) and introduced a bill prohibiting the Federal Reserve from issuing a CBDC directly to individuals.
The selection of a House majority leader is currently on hold until a speaker is chosen. Emmer enjoys support from several members, but the race remains unpredictable.
Hot Take: Delays in House Speaker Race Hinder Crypto Legislation Progress
The ongoing uncertainty surrounding the selection of a permanent U.S. House speaker is causing further delays in advancing crypto legislation. As representatives focus on resolving internal leadership issues, crucial bills related to stablecoins and regulatory frameworks for cryptocurrencies are put on hold. The hyper-partisan tensions within Congress make it unfavorable to bring up these bills at this time.
While temporary Speaker Patrick T. McHenry has been supportive of the crypto industry, his ability to work on crypto bills is limited until a permanent speaker is chosen. The Senate may ultimately take the lead if the House fails to address its internal conflicts. Therefore, the path forward for crypto legislation remains uncertain until stability is restored within the House of Representatives.
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