Republicans are poised to take control of the House of Representatives next year, a shift that could have a major impact on the crypto industry as regulators and lawmakers seek to establish new rules for digital assets.
The shift in power will affect negotiations on new rules for digital assets, giving Republicans increased leverage in Congress to influence policy around stablecoins and oversight of crypto’s spot markets, as well as the ability to put more oversight pressure on regulators. But due to the split control of Congress, Senate rules and continued Democratic control of the White House and Senate, any bills will require bipartisan support to become law.
Crypto legislation is expected to have a better chance to become law than policy in most other issue areas, given the relatively fresh debate around the topic, which has yet to become a fully partisan issue. But the recent implosion of FTX, with the impact of its fall reverberating across the digital asset industry, could complicate that.
Republicans will hold at least 218 House seats — the number needed for a majority in that chamber — a number that could grow with seven races yet to be fully determined.
Rep. Patrick McHenry, R-N.C., is poised to chair the House Financial Services Committee. The North Carolina Republican, a longtime leader on fintech policy issues ranging from crowdfunding to crypto, has worked on creating a new legal framework on stablecoins with his Democratic counterpart, current Committee Chair Maxine Waters, D-Calif. The two also announced a hearing on the FTX collapse and its wide-ranging impact on digital assets on Wednesday.
The North Carolina Republican told reporters today that digital asset legislation will be a top priority for his chairmanship.
“I think we have to have to define clear rules of the road, because our current regulators in this current administration is not doing anything to protect consumers,” said McHenry. “And in fact, they’ve made things worse.”
Another vocal crypto proponent, Rep. Tom Emmer, R-Minn., won his race for House Republican whip.
With additional reporting by Colin Wilhelm.
© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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