As the 2024 presidential election draws near, cryptocurrency has emerged as a significant issue in the political arena. Key candidates, including Vice President Kamala Harris and former President Donald Trump, have expressed their support for the digital asset industry, adding a new dimension to the race to the White House. However, it is crucial to recognize that the future of digital assets in the United States will ultimately be shaped by Congress rather than the President.
Congressional Action: The True Determinant of Crypto’s Future
In a recent report by Dr. Tonya Evans, a professor at Penn State Dickinson Law, it is highlighted that Vice President Harris has distanced herself from President Biden’s previously cautious stance on cryptocurrencies. This shift is largely influenced by the Securities and Exchange Commission (SEC) and other regulatory bodies. Harris now advocates for a pro-innovation narrative, emphasizing the importance of blockchain and digital assets as essential components of her vision for an “Opportunity Economy” that empowers middle-class families and small businesses.
On the other hand, former President Trump has made headlines with promises to transform the United States into the “crypto capital of the planet.” He has pledged to remove SEC Chair Gary Gensler from his position on his first day in office. Despite these high-profile promises, Evans argues that the President’s ability to effect meaningful change in the crypto landscape is limited. The legislative branch, Congress, holds the real power to shape the regulatory framework governing digital assets.
Under Article II of the Constitution, the President cannot unilaterally create laws or alter regulations. Instead, the President’s role is primarily to enforce the laws passed by Congress and oversee regulatory agencies such as the SEC and the Commodity Futures Trading Commission (CFTC). Evans further emphasizes that for sustainable progress in the digital asset industry, Congress must take decisive legislative action. However, many observers and cryptocurrency advocates often focus their attention on presidential races, neglecting Congress’s critical role in regulation.
Growing Bipartisan Support for Cryptocurrency in Congress
Despite what has been perceived as a lack of congressional action in recent years, Evans highlights a notable advancement in the legislative landscape with the passage of the Financial Innovation and Technology for the 21st Century Act (FIT21). This legislation incorporates Rep. Tom Emmer’s Securities Clarity Act, aiming to provide much-needed clarity in the digital asset space by distinguishing between an asset and the securities contract to which it may be linked. This clarity could prove crucial in potential future cases, such as the well-known dispute between blockchain payments company Ripple and the SEC.
Support for crypto innovation is gaining momentum in Congress. Figures such as Rep. Maxine Waters (D-CA), once a critic of cryptocurrencies, now recognize the importance of engaging with emerging technologies. At a recent town hall event, pro-crypto lawmakers urged Vice President Harris to adopt a more favorable stance toward digital assets. Simultaneously, Senate Majority Leader Chuck Schumer (D-NY) expressed optimism about passing bipartisan legislation.
Moreover, data from StandWithCrypto.com reveals that over 50 Democratic lawmakers, including prominent figures like Rep. Ro Khanna (D-CA), are now supportive of pro-crypto legislation. To ensure that the United States remains a leader in crypto adoption, Evans suggests that Congress must prioritize policies that foster innovation rather than merely tweaking existing regulations. Unlike the executive branch, Congress has the authority to create tailored laws to meet the specific needs of the crypto industry.
Evans concludes, “Now is the time to focus where the real power lies – on Congress.” The emphasis on congressional action underscores the importance of legislative efforts in determining the trajectory of the digital asset landscape in the United States.
