Outgoing Republican Rep. McHenry Urges Senate to Pass Key Crypto Bill Before November Elections
Summary:
Republican Representative Patrick McHenry, who is set to retire, urges the Senate to approve the essential FIT21 Act, a crypto-regulatory bill, before the November presidential elections. The FIT21 Act, passed by the House in May, positions most cryptocurrencies to be designated as commodities and regulated by the CFTC, perceived as more crypto-friendly than the SEC, which will maintain authority over insufficiently decentralized cryptocurrencies. The approval process in the Senate, which has no time constraints to act on FIT21, requires a 51-senator majority vote.
Republican Representative Patrick McHenry, soon to depart his position, is pushing for the Senate to approve a crucial cryptocurrency bill before the forthcoming November presidential elections. The Financial Innovation and Technology for the 21st Century Act (FIT21), which earned the support of 208 Republicans and 71 Democrats, successfully made its way through the House on May 22. McHenry, the House Financial Services Chairman retiring early next year, urged the Senate to promptly act on this bill during a May 30 appearance on Bloomberg's Balance of Power.
The FIT21 Act paves the way for the majority of cryptocurrencies to be regulated under the Commodity Futures Trading Commission (CFTC) as commodities. The cryptocurrency sector perceives the CFTC as a more crypto-friendly regulator compared to the Securities and Exchange Commission, although the latter retains authority over cryptocurrencies that lack ample decentralization.
The Senate's initial reaction to FIT21, as reported by McHenry, was surprise at the "vast margin" of approval in the House. Opposition to the bill came from the SEC and President Joe Biden. "Having the FIT21 bill pass with a two-thirds vote in the House of Representatives in these partisan times is a significant accomplishment," McHenry noted, emphasizing their goal to establish regulated digital assets and cryptocurrency systems in the U.S.
The Senate, led by Democratic Majority Leader Chuck Schumer and his 48 Democratic allies, along with the chamber's three independents, faces 49 Republicans. The Senate is unrestricted in its timetable to address the FIT21 Act and needs a 51-senator majority vote for the bill to be ratified.
McHenry revealed his collaboration with Democratic Representative Maxine Waters for nearly two years in attempts to pass a stablecoin bill. He acknowledged that it would require being linked to a larger legislative initiative to gain Senate approval. However, McHenry dismissed the idea of linking the stablecoin bill to the SAFER Banking Act, an initiative aimed at increasing financial accessibility for cannabis companies, stating his opposition to it. He suggested that Republicans plan to tactically "turn up the heat" on Schumer and the Senate to prioritize the passage of a crypto bill. The U.S. presidential election is slated for November 5th.
Published At
5/31/2024 8:58:04 AM
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