And on another note, I wanted to thank everyone who said hi to me at Consensus last week. It was great seeing all of you.

As a cryptocurrency analyst, I would recommend checking out the State of Crypto newsletter published by CoinDesk. This insightful publication explores the intricate relationship between digital currencies and governing bodies. To ensure you receive future editions, kindly click here to subscribe.

Next steps

The narrative

Last week, during their respective meetings, Representatives Patrick McHenry and Tom Emmer, as well as Senator Ron Wyden, expressed their views on the Financial Innovation and Technology for the 21st Century Act (FIT21).

Why it matters

One significant point of debate was the House’s approval last month of the Financial Innovation and Technology for the 21st Century Act, a legislative proposal aimed at modernizing market structures and significantly altering the regulatory landscape for crypto businesses in the US, should it be enacted. However, given the Senate’s current composition, the bill’s prospects for advancement are limited.

Breaking it down

Passing a bill in the Senate involves intricate procedures. According to previous reports by CoinDesk, there’s a possibility that the Senate might need to begin anew with crafting a market structure bill, which implies going through the comprehensive committee process once more.

As a crypto investor, I’d put it this way: Last week, during a public appearance, House Majority Whip Tom Emmer (R-Minn.) shared that if the current form of the bill makes it to the Senate floor, there’s a strong likelihood that they will modify certain provisions or aspects of the bill. In such a scenario, the bill would then return to the House for further review and potential amendments.

He expressed that the optimal timing for completing this task is this year. It might be most feasible to accomplish it towards the end of the year, once the current chaos subsides and all parties involved realize the urgency of the situation.

As a crypto investor, I’m excited to share that Rep. Patrick McHenry, the chairman of the Financial Services Committee, expressed his confidence in the enactment of the Financial Institutions Technology Act 2 (FIT21) within the upcoming year. With an impressive 279 votes in favor during its passing, this legislation has garnered significant support among congressional members.

“It was beneficial and positive that the White House didn’t threaten a veto on FIT21. This indicates their willingness to collaborate and engage in policy-making. However, dealing with the Senate can be intricate and complex as usual.”

The backers of the bill then plan to contact Senators regarding the legislative proposal.

As a researcher studying legislative processes, I’ve observed that if a bill garners the support of two-thirds of the House of Representatives, it is often able to secure the same level of backing in the Senate, or at least a substantially similar version of the bill.

Senator Ron Wyden from Oregon, among the Democratic legislators who opposed the SEC’s repeal of Staff Accounting Bulletin 121, expressed his viewpoint on FIT21 by stating, “What we truly require is a well-defined regulatory structure.”

“Chairman McHenry aims to accomplish that,” he remarked. “It’s crucial to take a firm stance against swindlers and deceitful individuals.”

“The progress of the bill is uncertain, but I agree with Chairman McHenry’s initiative to set up a regulatory system and target fraudsters more effectively,” he commented.

In the upcoming weeks, this newsletter will feature the text versions of select discussions that took place at Consensus.

Stories you may have missed

This week

Tuesday

Wednesday

Elsewhere:

If you have ideas for topics I should cover next week or any suggestions you’d like to make, please don’t hesitate to reach out to me via email at nik@coindesk.com or connect with me on Twitter @nikhileshde.

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See ya’ll next week!