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US Senator Schumer Intends to Pass Crypto Legislation This Year

AuthorSyed Ali Haider
Crypto News Author
Fact Checked by Joshua Downes
Last updated: August 15, 2024
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US Senator Schumer Intends to Pass Crypto Legislation This Year

Highlights:

  • Schumer aims to pass crypto legislation by year-end if Harris wins.
  • Schumer warns that crypto may move overseas because of the US’s uncertain regulatory framework.
  • Crypto4Harris event pushes bipartisan crypto regulation, contrasting with Trump’s evolving stance.

US Senate Majority Leader Chuck Schumer says he intends to pass bipartisan pro-crypto legislation by the end of this year if Kamala Harris is elected as the next President. “Congress has a responsibility to provide common sense and sound regulation,” the New York Democrat said Wednesday at a virtual town hall hosted by Crypto4Harris, a grassroots organization supporting Kamala Harris’ presidential campaign. Schumer urged lawmakers to stop “sticking their heads in the sand” on crypto innovation in the US.

He stated:

“My goal is to get something passed out of the Senate and into law by the end of the year, and I believe we can make that happen. I think we should strike a balance for crypto between promoting innovation and providing common sense guardrails.” 

He further added that not taking action could lead to crypto moving to countries with minimal regulations and a lack of oversight. Acknowledging crypto’s growth and rising influence, Schumer suggested that a Harris administration might support cryptocurrency. “Innovation is our North star when it comes to AI or crypto,” Schumer said, emphasizing the need for regulations to ensure national security, protect users, and prevent misuse.

The Crypto4Harris event is one of several grassroots efforts pushing for a pro-crypto shift in Harris’s campaign. Since VP Harris hasn’t clarified her stance on crypto, many assume she’ll adopt the Biden administration’s approach, which has been unfavorable to crypto firms in the US.

Crypto4Harris Event Highlights Bipartisan Support for Crypto Regulation

The Crypto4Harris event aimed to “reset” with Vice President Kamala Harris and her future administration, highlighting that the crypto bill is not tied to any single party. Anthony Scaramucci, founder of SkyBridge Capital, spoke on behalf of his industry peers, advocating for positive and bipartisan cryptocurrency regulation.

Democrat Congressman Wiley Nickel criticized opposition presidential candidate Donald Trump for initially calling crypto a “scam” and then supporting it to win votes.

Nickel said:

“Digital assets and blockchain technology is not a partisan issue. Turning this into a political football is only going to set us back just decades in Congress, so that’s been my focus, making sure we keep this as a bipartisan issue.”

Billionaire and Shark Tank personality Mark Cuban supported crypto, noting that it isn’t solely for the elite class. He implied that crypto is not just for the elite but rather focuses on egalitarianism. This approach, he suggested, presents a significant opportunity for everyone while indicating that Republicans appear indifferent to this potential.

Moreover, Senator Debbie Stabenow, chair of the Senate Agriculture Committee, pledged to create a structure that protects consumers while allowing crypto innovation to thrive. She has worked with the Commodities Trading Futures Commission (CFTC) and emphasized that crypto assets should be regulated as commodities, placing them under the CFTC’s authority. 

The crypto community sees the CFTC as more crypto-friendly than the SEC, led by Gary Gensler, who faces criticism for his “regulation by enforcement” approach to US crypto firms. Schumer’s intent to pass crypto legislation is also backed by several Democratic politicians, including Colorado Governor Jared Polis, Senator Kirsten Gillibrand, and Representatives Elissa Slotkin and Adam Schiff.

Harris Vs. Trump

Crypto4Harris, with a page on X, is a grassroots network of crypto advocates working on organizing, fundraising, and shaping crypto policy for the Harris For President campaign. Crypto is making waves in the election season, with millions going to super PACs. Donald Trump has promised to end the crackdown on crypto and has chosen crypto-friendly J.D. Vance as his running mate.

In June, he also pledged support for Bitcoin miners. Meanwhile, candidate Harris has started engaging with the crypto industry, expressing a desire to learn more about it, according to a source from her campaign. She has not yet publicly addressed her stance on crypto.

Multiple Crypto Bills in Action

Washington lawmakers are crafting crypto regulation bills, but none have reached President Joe Biden yet. In the Senate, Sens. Cynthia Lummis and Kirsten Gillibrand introduced a bill in April that bans unbacked algorithmic stablecoins and seeks to clarify stablecoin regulations in the US. Senate Agriculture Committee Chair Debbie Stabenow, D-Mich., is working on a crypto regulation bill and will resume progress in September.

In May, the House passed a Republican-led bill giving the Commodity Futures Trading Commission authority over “digital commodities” and the SEC oversight of digital assets in investment contracts. Seventy-one Democrats, including former Speaker Nancy Pelosi, supported the bill. Work is also ongoing on stablecoin regulation.

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