The crypto industry experienced a major turn of events as Rep. Patrick McHenry, the key Republican negotiator for cryptocurrency legislation, firmly predicted establishing the digital assets law by next year. McHenry also mentioned significant bipartisan backing for the Financial Innovation and Technology for the 21st Century Act (FIT21) in the House of Representatives.
Many House Democrats have supported the bill despite opposition from the White House. McHenry believes this momentum will drive the bill to become law by 2025. He assured, “Crypto policy is inevitable, and crypto law is inevitable,” emphasizing the need for comprehensive crypto regulation.
McHenry’s Legacy and Legislative Push
As the retiring chairman of the House Financial Services Committee, McHenry is determined to strengthen his legacy in cryptocurrency. He described FIT21 as a “consensus product” of the House, a crucial achievement that shouldn’t be overlooked.
McHenry’s confidence stems from strong bipartisan support, which he believes will continue into the next congressional session if necessary. He opines that this consensus will be beneficial when the market structure bill is passed. Additionally, the legislation will regulate stablecoin issuers, providing the clarity and stability needed in the crypto market.
Charting the Legislative Course
Despite his retirement at the end of 2024, McHenry is dedicated to advancing the legislation before his departure. He acknowledged the complexity of the Senate but remains optimistic about getting the bill to President Joe Biden’s desk. McHenry is exploring all possible legislative avenues to attach the crypto bill. His colleague, Rep. Tom Emmer, suggested the lame-duck session as the best opportunity to pass the legislation. The lame-duck session is a transitional period during which outgoing lawmakers are more inclined to finalize statements on pending bills.
Challenges and Criticisms
However, McHenry’s promise of impending crypto legislation comes with significant challenges. A similar promise was made last year at the Consensus event, where McHenry cited turbulence among House Republicans as a huge challenge due to unforeseen leadership issues.
Furthermore, the Securities and Exchange Commission (SEC) recently issued a fresh alert warning of crypto scams. Lawmakers and crypto executives were convened in Austin, Texas, to discuss the future of digital assets.
This highlights the ongoing regulatory challenges and the urgent need for clear, enforceable crypto laws to protect investors and ensure significant industry growth.
