Highlights:
- Rep. McHenry calls for a broader vehicle for stablecoin legislation in the Senate.
- Recent pro-crypto laws bring digital asset regulations into focus, says McHenry.
- McHenry highlights the Financial Innovation and Technology for the 21st Century Act as a landmark bill.
Rep McHenry, a US lawmaker, has emphasized the urgent need for expanded stablecoin regulation. Congress has been discussing this issue for the past 23 months. Recent developments in pro-crypto legislation have highlighted the need for a comprehensive approach.
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Recent Developments in Legislation
In an interview with Bloomberg, Rep McHenry discussed the legislative advancements favorable to cryptocurrency. He stressed the importance of a more comprehensive vehicle for a stablecoin bill in the Senate. This month has seen significant shifts in the stance of several US lawmakers, propelling digital asset regulations to the forefront.
Events like former President Donald Trump’s acceptance of Bitcoin donations have sparked wider market speculation. The anticipated bipartisan support from Democratic and Republican supporters has further fueled discussions.
Focus on Stablecoin Legislation
According to Rep McHenry, efforts to pass stablecoin legislation in the Senate focus on creating an effective vehicle for the measure. He emphasized that the legislation must have a clear deadline and an opportunity for adoption.
Despite skepticism from many commentators, Rep McHenry believes recent successes, like the passing of the market structure law, indicate bipartisan support. He noted the support from Democrats in the voting process as a positive sign for the bill’s future.
Market Structure Bill’s Senate Journey
The Financial Innovation and Technology for the 21st Century Act (FIT 21) was recently passed in the House by lawmakers from both parties. However, its fate in the Senate remains uncertain. Rep McHenry stated that FIT 21 creates a framework for digital asset ownership, giving regulatory form to the ecosystem.
Described as a landmark bill involving consumer protection and capital flows, its passage with a two-thirds majority is significant. McHenry highlighted the importance of this legislation in establishing a regulatory structure for digital assets.
Rep McHenry highlighted the necessity for a larger vehicle to drive the stablecoin legislation in the Senate. He emphasized that until the Senate prioritizes these policies, efforts will focus on creating the best atmosphere and pressure for the bill.
Congress Pushes to End SEC’s Crypto Regulation Confusion
Congress has called for an end to the SEC’s confusion over crypto regulations. SEC members are increasingly frustrated with their institution’s approach to overseeing the cryptocurrency market.
The FIT21 Act, designed to classify cryptocurrencies as commodities, has faced delays despite passing the House with bipartisan support. This bill, formally known as the Financial Innovation and Technology Act for the 21st Century, is a critical step forward. Still, its implementation may take years due to institutional coordination challenges.
SEC Commissioner Hester Pierce highlighted Congress’s growing impatience with the SEC’s handling of crypto firms, stating, “Congress is tired of looking at what the SEC is doing, which is not providing clarity to people.”
CFTC Commissioner Summer Mersinger also expressed frustration at the slow pace of regulatory progress, noting, “If you think legislation takes a long time, rulemaking takes even longer.”
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