Patrick McHenry (R-N.C.) – Chairman of the House Financial Services Committee said the agency and the U.S. House Agriculture Committee will work together on legislation to regulate the cryptocurrency industry in the coming months. The “next 2 months” after the joint hearing in May.
Rep. Patrick McHenry
Asked whether U.S. President Joe Biden could sign such a bill into law within the next 12 months, McHenry said “yes” to the crowd at the Consensus 2023 event. Legalizing something new is always a challenge, lawmakers argue.
“We plan to reach an agreement within the next two months,” he said, adding that the bill would address the stock and commodity regime and the intractability of the two markets.
Another panelist during the meeting, Sen. Cynthia Loomis (R-Wyo.), said Cynthia Loomis looked forward to coordinating those efforts with McHenry, adding that the U.S. House of Representatives was more likely to move sooner than the U.S. Senate. passed legislation. If the U.S. House of Representatives takes the first step in the cryptocurrency space, it will “increase our chances in the Senate,” she said.
“We’re trying to avoid that partisan theme. It’s a bipartisan topic that we need to address before the 2024 election.”
Despite progress on several bills on Capitol Hill last year, the U.S. Congress has so far been unable to pass comprehensive legislation on cryptocurrencies.
But this month, Republicans on the U.S. House Financial Services Committee sought bipartisan support for stablecoin legislation, despite uncertainty over bipartisan support. Republicans have put forward a discussion draft that could mark a new beginning in negotiations with Democrats.
Lummis, who has been named the “Queen of Cryptocurrency” in the U.S. Senate, introduced the bipartisan “Responsible Financial Innovation Act” last year, which aims to create a regulatory framework for the industry alongside Sen. Kirsten Gillibrand (D-N.Y.) last year.
A new and improved version of the bill will be published in six to eight weeks, the senators announced at the consensus conference.
“We’re likely to go further into national security. You’re going to see a lot more regulation of cybercrime in our bill.”
The bipartisan bill introduced Thursday in the U.S. Senate and House of Representatives calls on the federal government to study the use cases of cryptocurrencies in illegal activities, including how terrorists might use such property for fathers or other criminals.
Last week, McHenry’s committee criticized U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler for refusing to say whether ETH is a security.
“Congress needs to provide adequate guidance there. I predict that we will still use the Howey test in the most modern way shown by US courts.
While the impasse between Republicans and Democrats in Congress continues, lawmakers are under increasing pressure to legalize the industry following the collapse of the FTX exchange and the recent cryptocurrency bank debacle.
McHenry also said that the recent role of cryptocurrencies in the U.S. banking crisis has strained banking relations in the industry, and it is worth considering an “Operation Choke Point 2.0” strategy.
“We have to fix this, we have to make sure you can bank safely and sensibly. This is a great example of how Congress has to legislate and provide clarity.”
Meanwhile, jurisdictions such as the European Union have approved Market in Cryptocurrency (MiCA) legislation, making it the first major jurisdiction in the world to introduce comprehensive crypto legislation. McHenry had earlier said that the EU was united to put the EU at the forefront of Web3 technology.
“Some jurisdictions are ahead of us,” Lummis said, referring to MiCA and other efforts. “We’re behind. These countries are calling on us to catch up.”
Regulators in Japan and the United Arab Emirates have also begun policing the space, while Hong Kong and the United Kingdom are rethinking how they handle cryptocurrencies.
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According to Coindesk