Patrick McHenry, the chair of the House Financial Services Committee, is calling on the Senate to pass an important bill aimed at clarifying cryptocurrency regulations before the upcoming U.S. presidential election in November.
On May 22, the U.S. House of Representatives overwhelmingly approved the Financial Innovation and Technology for the 21st Century Act (FIT21) bill by a vote of 279 to 136, sending it to the Senate for consideration.
McHenry emphasized the urgency of the situation, stating in an interview with Bloomberg’s Balance of Power on May 30 that the Senate needs to prioritize passing the bill before the election. He stressed the need for swift action to establish clear policies in the cryptocurrency sector.
The bill, if passed, would designate most cryptocurrencies as commodities and place them under the regulatory oversight of the Commodity Futures Trading Commission (CFTC). This move is seen as favorable by many in the crypto industry, as the CFTC is generally viewed as more supportive of cryptocurrencies than the Securities and Exchange Commission (SEC).
Despite the positive reception in the House, the Senate has not set a specific deadline for considering the FIT21 bill. It will require a majority vote of at least 51 senators to pass.
McHenry, who is working with Democrat Maxine Waters on cryptocurrency and stablecoin legislation, acknowledged that any new regulations would likely need to be part of a larger legislative package to advance in the Senate.
Critics of the crypto bill argue that it is too industry-friendly, while the Biden administration has emphasized the need for a balanced approach that protects consumers while fostering innovation in the crypto space.
McHenry also expressed opposition to Senate Banking Chairman Sherrod Brown’s proposal to link a stablecoin package to a bipartisan marijuana banking bill, which is a priority for Schumer. He made it clear that Republicans would push for the Senate to prioritize passing a crypto bill without linking it to other unrelated legislation.
As discussions continue in Congress, it seems that lawmakers are getting closer to reaching an agreement on stablecoin regulation in the near future.