U.S. Lawmakers Push for Crypto-Related Measures in Legislative Packages
U.S. lawmakers are still striving to include crypto-related measures in end-of-year legislative packages, although it is expected that more action will take place in 2024. While there may not be a larger “omnibus” bill where multiple measures can be added at the end of the year, certain crypto provisions could still be included in other end-of-year bills.
The National Defense Authorization Act (NDAA) could potentially feature an amendment from Senators Cynthia Lummis, Kirsten Gillibrand, Roger Marshall, and Elizabeth Warren. The amendment would require regulators to establish examination standards for financial institutions involved in crypto activities and mandate the Treasury Department to provide recommendations to Congress on crypto mixers.
‘Good Compromise’ Proposal
The proposed amendment is viewed as an acceptable compromise by the crypto industry. However, there is less enthusiasm for Senator Warren’s bill, which seeks to crack down on the use of crypto for money laundering and sanctions evasion by extending know-your-customer requirements to miners and wallet providers.
Another bill that the industry supports is the Financial Technology Protection Act, which would establish a working group with representatives from various federal agencies to combat terrorism and illicit financing.
Potential Inclusion of Crypto Provisions
Crypto provisions could also be included in a final appropriations package, such as one that allocates funds to the Treasury Department for research and collaboration with blockchain analytics firms. However, more partisan provisions, like one aiming to remove funding from the Securities and Exchange Commission for crypto-related enforcement actions, are unlikely to be included.
Tensions Rise
Representative Patrick McHenry has been pushing to include crypto legislation into the NDAA. His committee has already advanced bills related to market structure and stablecoins, but the odds of successfully including them in the NDAA are uncertain. Senator Sherrod Brown, who leads the Senate Banking Committee, would need to support these bills for them to have a chance of being included.
The stablecoin bill, which addresses concerns about Tether’s alleged use in illicit finance, has a higher chance of being included compared to the market structure bill. However, it is expected that there will be a more focused legislative effort for crypto in 2024.
Hot Take: Crypto Provisions Face Uncertainty in End-of-Year Legislative Packages
U.S. lawmakers are still working to include crypto-related measures in end-of-year legislative packages, although it is more likely that significant action will occur in 2024. The National Defense Authorization Act could potentially feature an amendment requiring examination standards for financial institutions engaged in crypto activities. While this amendment is viewed as an acceptable compromise by the crypto industry, other proposals, such as one aiming to extend know-your-customer requirements to miners and wallet providers, are met with less enthusiasm.
There is hope that the Financial Technology Protection Act will be added to the NDAA, creating a working group to combat terrorism and illicit financing. However, more partisan provisions are unlikely to be included. Despite efforts by Representative Patrick McHenry and others, the inclusion of crypto legislation in the NDAA remains uncertain due to opposition from Senator Sherrod Brown. It is anticipated that a more dedicated legislative effort for crypto will take place in 2024.
By
By
By
By
By