Key lawmakers on both sides of the aisle are bullish on Congress’ chances in 2025 of passing a bill to provide regulatory clarity for the cryptocurrency industry.
Sen. Tim Scott, R-S.C., the incoming chair of the Senate Banking Committee, Rep. French Hill, R-Ark., the incoming chair of the House Financial Services Committee, and Rep. Ro Khanna, D-Calif., each said Congress should prioritize cryptocurrency regulation in the new Congress during appearances Dec. 17 at the Blockchain Association’s Policy Summit in Washington.
The bill pro-crypto lawmakers hope to pass in the new Congress is the Financial Innovation and Technology for the 21st Century Act, or FIT 21. The legislation would give new authority over the digital commodities market to the Commodity Futures Trading Commission, while also designating the Securities and Exchange Commission as the regulator for the digital securities market. It also calls on both agencies to create joint rulemaking on the issue and would allow digital asset intermediaries to dually register with the CFTC and SEC.
The House in May passed FIT 21 in a 279-136 vote, with nearly all Republicans and 71 Democrats voting yes. However, the bill never came up for a vote in the Senate this year.
Scott said he plans to establish a digital assets subcommittee within the Senate Banking Committee to help spearhead the effort to pass a cryptocurrency bill.
“I think the future is incredibly bright,” Scott said of the crypto industry. “Therefore, it warrants the time and the energy, as well as the resources to make sure that there is a light touch or responsible level of regulation, rules of the road that (don’t) stop the innovation from happening.”
On the House side, Hill, one of FIT 21’s sponsors, said regulatory clarity is needed to foster innovation. The best way to do that, he added, is through law so the issue doesn’t ping-pong from administration to administration.
With Republican control of the White House, Senate and House, French said he’s confident the bill will pass.
“I’m very optimistic because I’m optimistic (about) our executive branch partners and U.S. Senate partners,” Hill said. He added that he’d like the bill to be bipartisan and noted that it will require 60 votes in the Senate, meaning that Republicans will need Democrats’ support to pass FIT 21.
Khanna, a House Democrat who supports that effort, said FIT 21 should be a priority next year. He also said more Democrats are warming up to crypto.
“I’m optimistic because you’ve got a whole new generation in Congress and that means that more and more people are willing to take a fresh look at this,” Khanna said.
Cryptocurrency will get more attention in Washington come 2025. President-elect Donald Trump has already announced plans to nominate a pro-crypto SEC chair as well as the country's first artificial intelligence and crypto czar.
Crypto stakeholders have clamored for years for regulatory clarity. SEC Chair Gary Gensler, a critic of the cryptocurrency industry who has been accused of “regulation by enforcement,” has maintained a position that there are already sufficient regulations in place under laws governing securities, commodities, money laundering and sanctions.
