U.S. Sen. Wyden: House ‘Right’ to Pursue Crypto Bill, Late in Session for More Progress

As a crypto investor with some experience in the industry, I find Sen. Ron Wyden’s remarks at Consensus 2024 both reassuring and cautionary. The approval of the FIT21 bill in the House of Representatives is a significant step forward for the digital asset market structure, but it remains to be seen how far this legislation will progress in the Senate.

In Austin, Texas, Senator Ron Wyden of Oregon, known for his advocacy on crypto matters among Democratic Senate members, expressed uncertainty during the Consensus 2024 event by CoinDesk about a swift legislative resolution for the industry. However, he maintained optimism, predicting that the crypto momentum will persist in Washington next year.

Following the House of Representatives’ approval of the Financial Innovation and Technology for the 21st Century Act (FIT21) spearheaded by Rep. Patrick McHenry (R-N.C.), with one-third Democratic backing, the responsibility for turning this legislation into law concerning digital assets market structure now falls upon the Senate.

At the Austin, Texas event, Senator Wyden expressed uncertainty about how far the bill would advance given the late hour of the session. However, he agreed with Chairman McHenry’s initiative to instate a regulatory framework and intensify efforts against fraudsters and deceitful actors.

“We’ve made a lot of headway, but there’s a long way to go,” Wyden said.

As a researcher studying recent political developments in the U.S. financial sector, I came across an interesting turn of events. Senator Wyden, who chairs the Senate Finance Committee, was among the 11 Democratic senators collaborating with Republicans to challenge the U.S. Securities and Exchange Commission’s (SEC) crypto accounting policy – Staff Accounting Bulletin No. 121 (SAB 121). Despite bipartisan approval of a resolution to revoke this policy in both the House and Senate, President Biden has signaled his intention to veto it.

Wyden expressed that this proposal establishes a distinct standard for cryptocurrency custody unlike anything in the financial sector. He and a group of others urged caution, suggesting we take the time to understand and avoid creating an exclusive system for holding customers’ digital assets.

The senator, being part of the Congressional Internet Caucus, expressed his backing for stablecoins and voiced optimism towards advancements in blockchain technology, specifically its potential applications in developing transferable electronic health records.

The speaker noted that Congress frequently faces challenges when it comes to adopting new technologies. However, he emphasized that cryptocurrency is an important topic that candidates might find particularly compelling for their campaigns during this year’s elections.

“The buzz around this topic is undeniably increasing,” he remarked. “This trend is largely fueled by a vibrant community of innovative and enthusiastic individuals.”