Crypto Voters’ Guide to Congressional Legislation for the 2024 Election
In the year As the 2024 U.S. elections approach, digital assets have become a political issue for the first time, as industry executives and advocates push candidates to adopt pro-industry policies and embrace the financial future.
A clear and comprehensive digital asset policy is not easy in the United States, as regulators such as the Securities and Exchange Commission (SEC) oversee enforcement actions rather than lawmaking. This lack of consistent structure is a growing concern for elected lawmakers, industry service providers, and single-issue crypto voters.
While understanding a particular candidate's stance on crypto policy is key, voters need to understand the underlying legislation currently being considered in the House and Senate. The main pieces of legislation currently under consideration are listed below.
Financial innovation and technology for the 21st century law
The Financial Innovation and Technology for the 21st Century Act (FIT21) – introduced by Pennsylvania Congressman Glenn Thompson in 2023 – aims to establish a comprehensive digital asset regulatory framework by bringing sufficiently decentralized assets under the control of the Commodity Futures Trading Commission (CFTC). The bill demonstrates these criteria for adequate decentralization:
“Among other requirements, no person has unilateral authority to control the blockchain or its use, and no issuer or affiliate controls 20% or more of the digital asset or the voting power of the digital asset.
However, the bill also gives the SEC authority to regulate digital assets that are considered securities. In the year In May 2024, the bill was passed by the House and must pass the Senate before being sent to the President for consideration.
CBDC Anti-Surveillance State Law
Minnesota Representative Tom Emmer first introduced the CBC Anti-Surveillance State Act in 2023.
The purpose of the bill is to prevent the Federal Reserve Bank from creating consumer-facing central bank digital currencies (CBCCs) or holding accounts on behalf of individuals.
What's more, the bill seeks to completely restrict the Federal Reserve from “using central bank digital currency to implement monetary policy or issuing central bank digital currency.”
CBCCs have faced widespread criticism from the crypto community, libertarians, privacy advocates, and commercial banks. In the year In May 2024, the bill passed the US House and awaits a vote in the Senate.
Transparency of Payment Stablecoins Act 2024
The Stablecoins Payment Transparency Act seeks to re-introduce Patrick McHenry's 2023 bill of the same name and establish a comprehensive regulatory framework for US-dollar stablecoins.
A key difference between the new bill and the previous bill is a provision that allows stablecoin issuers with a market capitalization of less than $10 billion to be regulated at the state level rather than at the federal level.
The former bill has passed the House floor but has not yet been passed by either chamber. Senators Lummis and Gillibrand have introduced a similar bill with the Senate in April 2024 to establish a stablecoin regulatory framework.
Digital Asset Anti-Money Laundering Act
First introduced in July 2023 by Massachusetts Senator Elizabeth Warren, the Digital Asset Anti-Money Laundering Act proposes that providers of digital assets be subject to the same reporting requirements as traditional financial institutions under the Bank Secrecy Act.
Warren is one of the crypto industry's most vocal critics, and the 2023 bill has faced significant backlash as it is one of the most anti-crypto pieces of legislation currently under consideration.
The bill has yet to pass either house of Congress and has lost support from its co-sponsor, Republican Senator Roger Marshall, in July 2024.
Financial Technology Protection Act of 2023
The Financial Technology Protection Act of 2023, introduced by Representative Zachary Nunu of Iowa, aims to create a Financial Technology Task Force to prevent terrorism and organized crime through emerging financial technologies.
In the year In early 2024, the bill was approved by the United States House of Representatives and sent to the Senate for consideration.
Equal opportunity for all investors
Introduced by Nebraska Congressman Mike Flood in April 2023, the Equal Opportunity for All Investors Act expands the definition of “accredited investor” – lowering the barrier to entry to participate in private securities sales and offerings.
Specifically, the bill would allow individuals to qualify as accredited investors by passing a knowledge test administered by the SEC.
In the year In 2020, the SEC revised its long-term requirements for an accredited investor to emphasize financial acumen rather than net worth, income or wealth. The Equal Opportunity for All Investors Act has passed the US House of Representatives but has yet to pass the Senate.
Blockchain Regulatory Certainty Act
Representative Tom Emmer – one of crypto's most vocal proponents – has introduced the March 2023 Blockchain Regulatory Verification Act to the US House of Representatives. The central goal of the law is to exempt blockchain developers and service providers from traditional financial reporting requirements, as long as they do not hold customer funds.
The bipartisan bill was approved by the House Financial Services Committee in July 2023 and allowed to move to the US House of Representatives, but has yet to be passed by either house of Congress.
Save your coin rule
Ohio Congressman Warren Davidson introduced the Keep Your Coins Act in July 2023 as consumer-facing protections that would prevent regulatory agencies from using self-purchased wallets for US citizens.
At this time, it is not clear whether the law will be passed into law or gain widespread support.
Magazine: Crypto voters are rocking the 2024 election — and it's set to continue.
