© Paul J. Richards-Getty ImagesProof of the situation is Wednesday's edition of Fortune Crypto Magazine where Leo Schwartz provides policy and regulatory insights .
Anyone educated in civics at Schoolhouse Rock should know that passing legislation is no easy feat. For the cryptocurrency industry, the past year seemed like a huge opportunity. It had passionate lawmakers, bipartisan support on several key committees, and even a likable young founder willing to coach lawmakers and line his pockets with donations.
A change of a few months can make all the difference. After FTX's collapse in November, these major commissions spent the last month before her death going through the five stages of mourning. When Congress returned in January, all the oxygen in the House was used up in a tug-of-war to nominate a president. And while the sticky tentacles of FTX were spinning, other DC players took advantage of the ensuing power vacuum, from Gary Gensler of the Securities and Exchange Commission to bank regulators.
There have been signs of a crypto spring in Congress, from the Senate Banking Committee hearings to a small bill proposed Tuesday at the Financial Services House that would address the controversial definition of a "middleman" in cryptocurrencies. However, it is hard to shake the feeling that the cryptocurrency world has missed its best on The Hill of legislation, be it a sustainable structure or a market.
But as regulators continue to make gains, lawmakers are finally starting to show signs of life on the cryptocurrency front, and it was the busiest week of the year. On Tuesday, the Senate Banking House hosted Fed Chairman Jerome Powell, speaking of bank regulators being wary of cryptocurrency risks, warning of regulations that could “stifle innovation,” and the Senate Environment and Public Affairs Committee holding hearings on cryptocurrency mining. . .
Republican-controlled Board of Revenue Chairman Paul Rustin Behnam will meet before the Senate on agriculture on Wednesday, and then Thursday will be one of the highlights: a cryptic Board of Revenue hearing entitled “Coincidence or Coordination? Management in the Digital Asset Ecosystem.” Certainly the committee, which includes crypto theorists including Tom Emmer (R-Minnesota), is thirsty for blood after aggressive actions by the SEC and banking regulators.
“I think you will see congressional confirmation of this role,” said Ron Hammond, director of government affairs at the Blockchain Association. "Legislation here is the ultimate goal."
Given the division in Congress, the implications for FTX, and shifting priorities, we'll likely see favorable bills coming from a variety of sources. While the Senate Agricultural Consumer Protection Act seemed to be on its way last year, the committee is still trying to ignore the memory of Sam Bankman-Fried and, as Hammond pointed out, will focus on what happens. years. The Agricultural Campaign Bill and its counterpart in the House of Representatives. The Senate Banking Committee, which drafted an alternative to the DCCPA last year, now appears focused on money laundering legislation that has angered the cryptocurrency industry.
Instead, the House Financial Services Committee appears to have an advantage in developing cryptocurrency legislation. Unless they're too busy dropping bombs on Gensler. The chairman of the Securities and Exchange Commission, unfortunately, will not be present at Thursday's hearing.
Leo Schwartz
leo.schwartz@fortune.com
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This story originally appeared on Fortune.com.
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