The United States is one of the fastest growing areas for the cryptocurrency industry in the world. The results of the 2022 midterm elections that took place last November have the potential to determine the next priorities in banking and crypto regulation that will have a significant impact on the sector.
As a result of the election, the Democrats retained control of the Senate by a slim majority, and the Republicans gained control of the House. Accordingly, there will be a newly appointed Speaker of the House and House Finance Committee who will establish the key stakeholders for the upcoming regulation. Currently, the California Republican leader
kevin mccarthy he has been nominated for the position, but has not ascended to the post because he still faces opposition within the party.
Dividing opinions
Crypto policy is a relatively new topic, and after incessant congressional battles with Big Tech over privacy, there is an urgent desire to clamp down on digital asset regulation before it gets out of hand. A survey conducted by
The Harris poll indicated that 38% of US midterm voters would consider the candidates' positions on cryptocurrency when completing their ballots.
Major crypto companies have spent big funds in
elections by donating large sums to activists such as newly elected Republican Sen. Katie Britt, who succeeded anti-crypto Sen. Richard Shelby in Alabama. Governor Greg Abbot, who won against Beto O'Rourke in the Texas gubernatorial race, is a prominent supporter of the blockchain and digital asset industry. Democratic congressional candidate Jonathan Jackson, a strong supporter of the digital asset industry, won the campaign in his Chicago district by a landslide.
Historically, the Republican Party has supported the expansion of digital currencies, although it is frequently a bipartisan issue. However, several members of the Republican Party have resisted further study of the potential of central bank digital currencies (CBDCs) in the US. Representative Tom Emmer of (R-MN) proposed a bill in January 2022 to prohibit the development of federal currency to limit competition for other digital assets such as stablecoins. This indicates that the Republican Party will put more pressure on regulatory authorities, especially those appointed by the Biden administration.
While there are pro-crypto members of Congress on both sides of the aisle, more Democrats have expressed distrust of digital assets. Senator Elizabeth Warren has been
critical of Bitcoin due to its energy consumption and the negative impact of cryptomining on the environment. In early 2022, Democrat Anna Kelles proposed a bill in New York that would ban the development of new crypto mining facilities using carbon-based energy for two years, driving companies out of the area even though they still it had not become law. Others support mining facilities that they believe will create more jobs.
After the scare caused by the FTX Fraud Left in the crypto industry, post-midterm digital currency policies are refocusing on combating fraud and theft. The scandal has generated fervent interest in the new legislation, as longtime cryptocurrency advocates such as Rep. Patrick McHenry (R-NC) and Sen. Cynthia Lummis (R-WY) have been pushing for regulation. clearest.
Republican Congressman Warren Davidson has been re-elected to Congress, author of the Token Taxonomy Act, which would clarify the regulation of cryptocurrencies.
upcoming legislation
Bipartisan legislation being proposed this year would give the Commodity Futures Trading Commission (CFTC) more authority to regulate large digital currencies. New regulations are being proposed to end the regulatory uncertainty and infighting that has been occurring between two large regulatory authorities, the CFTC and the Securities and Exchange Commission (SEC), as the SEC has
moved closer to regulating digital assets with more aggressiveness and determination.
Three major bills for crypto regulation are coming before Congress: the Digital Commodity Exchange Act of 2022, the Responsible Financial Innovation Act, and the Digital Commodity Consumer Protection Act, which promote cryptocurrency. CFTC as the main regulator of digital assets.
The most comprehensive legislation being crafted in Congress is the bipartisan Lummis-Gillibrand bill which is designed to establish a regulatory framework for blockchain and digital assets, focusing on the integration and growth of digital currencies in the US with some basis for competition and innovation.
Other important digital asset regulatory bills being considered include the Digital Commodity Consumer Protection Act, designed to bring transparency and accountability for digital asset companies, and the legislative bill by Congressman McHenry and Representative Maxine Waters (D-CA) on stablecoins to clarify the regulation on the crypto market.
Whats Next?
Going forward, it appears that cryptocurrencies will remain a bipartisan issue. As for incoming legislation in 2023, there is likely to be more push to protect consumers and provide transparency in the crypto industry, as well as spur development of digital currencies through landmark legislation such as the draft Lummis-Gillibrand law. Overall, in the wake of the FTX scandal and the subsequent cryptocurrency crash, there is significant bipartisan legislation in the works in Congress to encourage and regulate digital assets for the future.
