Ron Hammond, Director of Government Relations at Blockchain Association, highlighted in a recent thread that the growing frustration within Congress regarding the stalled progress of crypto legislation. After a productive first half of 2023 in the House, where several bills were proposed, legislative activities have hit a roadblock, largely attributed to political turmoil and national security concerns.
The ongoing political drama in the House, including a speaker fight, efforts to avoid government shutdowns, and various national security threats, has hindered the legislative process. Congressman Patrick McHenry, the lead House banking Republican, expressed his disappointment, citing the loss of several months for voting on major bills.
Crypto Legislative Priorities
Both McHenry and Senator Sherrod Brown, the lead Senate banking Democrat, have criticized the House drama for delaying their legislative priorities. Brown’s focus includes issues like fentanyl, pot banking, and executive compensation, while McHenry emphasizes capital formation, data privacy, and crypto regulations.
Despite the anticipation that House drama will subside before the elections, hurdles for any bill are expected. McHenry, however, remains optimistic, asserting that his bills will receive a vote this year. The limited windows for legislative opportunities are in spring and post-election, adding urgency to the situation.
Efforts to rectify the situation, such as trading bills between camps or attaching smaller priorities to must-pass bills, have so far failed to gain traction. The frustration expressed by both leaders signals the need for a resolution.
While Brown faces the pressure of a tough reelection, McHenry, who is retiring, seeks to establish the first clear regulatory framework for crypto before concluding his nearly two-decade-long congressional career. The recent court decisions have emphasized the regulatory gap that Congress must address.
Despite bipartisan support for their policy priorities, political obstacles persist, such as last-minute involvement by the White House in the stablecoin bill or the exclusion of fentanyl in defense spending by the House. The bipartisan nature of their priorities adds to the frustration, with external factors posing challenges to progress.
Brown’s reelection battle is crucial, given his opponent Bernie Moreno’s involvement in the Ohio blockchain and crypto space. The crypto industry’s increased political engagement and the popularity of passing regulations create a complex political landscape for Brown. However, the role of crypto voters and their impact on a close race becomes a factor to be considered, potentially influencing Brown’s stance on crypto legislation and its implications for his political future.
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