Top Republican Retains Hope U.S. Crypto Legislation Can Get Done This Year

At the SALT Wyoming Symposium prior to the Federal Reserve’s annual gathering, neither she nor Sen. Tim Scott (R-S.C.) went into detail about a specific piece of legislation. However, she did hint at her ongoing involvement in matters handled by the Senate Agriculture Committee.

At their brief SALT appearance, Lummis and Scott made it clear to voters that when it comes to cryptocurrency, they feel Republicans are more in sync with these interests compared to Democrats. Notably, Republican presidential candidate Donald Trump has been vocal about his support for crypto during this election season. Contrastingly, Kamala Harris, the Democratic candidate, hasn’t explicitly spoken on the issue, but according to a Bloomberg report from Wednesday, she may be adopting a more accommodating stance towards digital assets.

In his time as the top Republican on the Senate Banking Committee, Scott has not made many comments about cryptocurrency. However, at the Bitcoin conference in Nashville last month, he was introduced to the crypto community alongside Lummis, where he expressed views commonly held within the crypto community, such as advocating for less stringent regulators and supporting legislation favorable to cryptocurrencies.

Should the Senate shift control to the Republicans, Scott would assume the position of chair. Earlier this week, he hinted at establishing a subcommittee dedicated to digital assets should he assume this role.

It’d be great if there was a specialized group within the Banking Committee dedicated to exploring the industry, as this would shed more light on discussions, lead to more hearings about the industry, and ultimately speed up our progress. With a heightened sense of purpose and momentum, we can achieve more in less time, resulting in bills being brought to the floor for debate and revision sooner.

In simple terms, both Lummis and Scott labeled Senators Sherrod Brown (D-Ohio) and Elizabeth Warren (D-Mass.) as legislators who were posing obstacles or challenges in the process of crafting laws related to cryptocurrency.

According to Lummis, the only method for achieving any progress this year regarding the proposed legislation is if it’s channeled via the Senate Agriculture Committee as Commodity Futures Trading Commission bills. On the other hand, Senator Chuck Schumer (D-N.Y.), the current Senate Majority Leader, has declared his intention to advance crypto-related legislation through the Senate and secure its approval by the end of the year, which he expressed during a talk at a “Crypto4Harris” event last week.

She described a hypothetical scenario in which the Senate Agriculture Committee could vote a bill out of committee, and it would become “a Christmas tree, as we call it.”

As a crypto investor, I’ve been keeping an eye on the potential inclusion of stablecoin provisions in the Agriculture Committee bill. Senator Lummis hinted at this possibility, implying that they might use the Howey Test as a foundation to clarify and define stablecoins.

“Chuck Schumer may advance his SAFER Banking Act, and surprisingly, another extensive financial services bill might follow suit. This combination seems viable for passage. However, the difficulty lies in finding sufficient legislative days to execute such a plan after the election.”

Scott agreed, expressing his belief that no bill would manage passage through the Senate Banking Committee during this current year.

“The incentives and drive are clearly present. Two key aspects of these incentives stand out: Representative Patrick McHenry in financial services, and Senator Debbie Stabenow in agriculture, who are both planning to retire. Leader Schumer aims to give Stabenow a fitting farewell through this legislation, which could be its passing. Thus, members from both parties in a bicameral setup are collaborating diligently to achieve results, ensuring that their collective efforts culminate in legislation that they believe will significantly benefit not only the industry but also American consumers.”

Election considerations

Firstly, Joe Manchin from West Virginia (who is an Independent) won’t be seeking reelection, and secondly, there are tight races anticipated in Ohio and Montana.

During the discussion, Lummis implied doubts about Vice President Harris’ potential effectiveness towards this sector, stating there seems to be no evidence suggesting she will prove beneficial for it.

So far, Harris’ campaign hasn’t provided detailed plans regarding cryptocurrency, but they started revealing broader policy proposals last week. During a meeting on Wednesday, an advisor to Harris’ campaign, Brian Nelson (a former senior official at the Treasury), mentioned that Harris is interested in fostering growth within the crypto sector; however, specifics have yet to be disclosed.

Lummis pointed out that this differs significantly from the traditional Republican party’s stance, as Trump had indeed drafted a proposal for the party platform that incorporated the concept of digital assets.

According to Lummis, the 2024 election presents the most favorable opportunity for Republicans over the subsequent six years. This is due to a higher number of seats being contested in states that tend to lean Republican. In the upcoming elections (2026 and 2028), she suggests that Republicans will find themselves playing more on defense, while Democrats may have the advantage.

As someone who has seen the power of bipartisan cooperation in driving progress and innovation, I believe that having a Republican president, House, and Senate for two years could indeed be transformative. This configuration would provide us with a unique opportunity to make significant strides in various industries, fostering growth and moving the needle in a positive direction.