U.S. crypto legislation, which had high hopes of passing through the House of Representatives in 2023, has been delayed until 2024. The postponement is attributed to leadership disputes within the Republican party, particularly the recent fight over installing a new House speaker. Key negotiator Rep. Patrick McHenry's involvement as stand-in speaker contributed to the delay. The two major crypto bills in question—one for regulating U.S. stablecoin issuers and another establishing a broad system of rules for crypto markets—are now expected to be considered in early 2024.
Rep. French Hill (R-Ark.), chairman of the House Financial Services Committee's subcommittee on digital assets, confirmed the shift in timeline. Furthermore, Sen. Cynthia Lummis (R-Wyo.), known for her extensive work on crypto legislation, suggested that the stablecoin bill might progress early in the next year. These developments highlight the intricate interplay of party politics and legislative priorities in U.S. governance.
The delay in the House impacts the legislation's progress in the Senate, controlled by Democrats. Efforts by lawmakers like Sen. Kirsten Gillibrand (D-N.Y.), who has worked with Lummis on crypto legislation, and Rep. Jim Himes (D-Conn.) emphasize the need for bipartisan support for these bills. Gillibrand's remarks at a recent event highlighted the need for continued education on cryptocurrency to garner wider support and understanding.
This legislative stall comes at a critical time for the crypto industry, which has seen significant events like the collapse of FTX and legal challenges facing Binance. These incidents, as noted by Hill, underscore the urgency of establishing clear regulations to prevent illicit finance and stabilize the sector.
Disclaimer: Please note that the information provided in this article is based on the referenced research articles. It is essential to conduct further research and analysis before making any investment decisions. The cryptocurrency market is highly volatile, and investors should exercise caution and consult with financial professionals before engaging in cryptocurrency trading or investment activities.
