The White House’s top crypto critic departed. What does that mean for a stablecoin bill?

Directed by the Freshly shorn Sam Bankman-FriedThe crypto circus has arrived in the Southern District of New York, occupying every crypto reporter this side of the Mississippi, who will find themselves stuck in the courthouse without electronic devices for hours every day.

While I will soon be part of that disconnected cohort, it is crucial to remember that there are other stories in the world of digital assets. That includes everyone's favorite gridlock in Washington, DC, where cryptocurrency legislation remains a frustrating carrot out of reach.

Everyone is rightly paralyzed by the chaos in the House of Representatives, where cryptocurrency advocate and Financial Services Committee Chairman Patrick McHenry (R.N.C.) temporarily assumed power after members of the Freedom Caucus and Democrats to unite to unseat Kevin McCarthy. While McHenry likely won't hold on to the doomed Speaker's job, one name being tossed around is another blockchain booster: Financial Services Committee member and Majority Leader Tom Emmer (R-Minn.) .

McHenry and Emmer's rising profile is likely bullish for cryptocurrency bills as they both work to persuade Democrats on their committee, and their homologs in the Senate, to negotiate on stablecoin and market structure legislation. However, flying under the radar has been an even more positive sign for the future of digital asset regulation: Bharat Ramamurti, deputy director of the National Economic Council left the White House.

Ramamurti is the kind of figure who wields massive influence in D.C. but is largely unknown outside the concentric circles of Hill staff, lobbyists, and advocacy groups that shape American politics. A member of Biden's transition team and an original member of his National Economic Council, Ramamurti emerged as a top aide to Sen. Elizabeth Warren (D-Mass.), joining the Biden administration as one of the emissaries of the progressive wing. He took on a broad portfolio in the administration, leading core initiatives such as student debt relief.

Reflecting your ex boss From Massachusetts, Ramamurti also became one of the administration's key voices against cryptocurrencies. The near-passage of stablecoin legislation in the House Financial Services Committee in July has become the stuff of legends in crypto circles: McHenry and Ranking Member Maxine Waters (D- Calif.) reached a deal before the White House intervened to block it.

The prevailing view is that the call came from Lael Brainard, the new director of the National Economic Council and a former member of the Federal Reserve Board of Governors. Ramamurti was apparently on vacation, but people familiar with the situation told me that McHenry blamed him for hindering the process.

Ramamurti left the White House in mid-September, marking a new chapter for the National Economic Council. While Brainard remains a clear cryptoskeptic, she seems more open to discussion than Ramamurti. “I 100% believe there is more of a way forward than there was before,” a former House staffer familiar with the negotiations told me. "It opens the door for this to be a more methodical and realistic conversation."

The world of cryptopolitics, of course, is celebrating the news. As one chief policy officer at a cryptocurrency company told me: "Why did some mid-level officials decide that the White House needed to destroy cryptocurrencies?" I contacted Ramamurti but received no response.

The open question will be who will take over Ramamurti's position at the CNE and whether Brainard decides to cooperate with the House Financial Services Committee. And even though stablecoins are seemingly the low-hanging fruit in cryptocurrency legislation, they may not even be McHenry's focus, as market structure remains a priority for the temporary chair as he negotiates with the Committee. Senate Banker.

Maybe the crypto circus is still in DC after all.

Leo Schwartz
leo.schwartz@fortune.com
@leomschwartz

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