This Week in Congress and Crypto
According to Ron Hammond, the Ripple case has had a significant impact on the impending stablecoin and market structure bills that are up for a vote in House committees next week. The case has weakened the SEC’s argument against legislation and put senior Democrats in a weaker negotiating position.
A Flip in Legislation Position
In 2018, senior Democrats were in favor of crypto regulation, but their stance flipped in 2022 due to the influence of the SEC. Hammond explains that when SEC Chair Gensler changed his position on legislation, so did the Democrats.
The Ripple Case: A Catalyst for Change?
The confusion surrounding the outcome of the Ripple case has reignited the debate about the need for legislation. Hammond believes that the case has highlighted clear regulatory gaps that need to be addressed, and both Republicans and Democrats will need to work together to get it done.
The Politics and Challenges of Future Legislation
Passing the bill will require navigating a complex political landscape and overcoming differing stances within the Biden administration. Hammond predicts that politics will determine whether both bills or just stablecoins will be addressed. However, he remains hopeful, drawing parallels with the success of the SAFE Banking bill.
Crypto Market Structure Legislation: An Imperative
Despite the political complexities, Hammond emphasizes the importance of supporting market structure legislation, regardless of one’s opinion on crypto. He believes that inaction is not an option.
Hot Take:
The Ripple case has had a significant impact on the politics surrounding cryptocurrency legislation, creating an opportunity for bipartisan efforts to address regulatory gaps. It remains to be seen whether the upcoming bills will pass, but the need for market structure legislation is clear.
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