The US Congress is gearing up for an active week in the realm of crypto regulation. This week promises a more “forward-looking agenda,” including crucial hearings and the introduction of significant legislative proposals in the Senate.
Congress Gears Up For Crypto Legislation
According to market expert Ron Hammond, the pace of activity in Washington is expected to accelerate. “Things have been busy and it won’t be slowing down anytime soon,” he remarked, signaling that the momentum around crypto legislation is building.
While the Senate will primarily focus on nominations, the House has initiated a series of hearings that will set the stage for upcoming legislative actions for digital assets this year.
Among the highlights is the first Digital Asset Subcommittee hearing of 2025. This hearing intends to discuss the regulatory framework necessary to usher in a “golden age” for cryptocurrency.
Witnesses at the hearing include notable industry figures such as Jonathan Jackym from Kraken, Jose Fernandez da Ponte from PayPal, and others, which marks a pivotal moment in Congress’s efforts to engage with the crypto sector.
In addition to the digital asset hearing, last week saw the introduction of differing stablecoin bills by House and Senate leaders. It appears that the Senate is poised to take the lead on stablecoin regulation, while the House will concentrate on broader “market structure issues.”
The urgency for stablecoin legislation is palpable, with Representative Maxine Waters recently unveiling her version of a stablecoin bill, adding to the discourse that currently includes multiple proposals from key lawmakers.
First Digital Asset Bill Of 2025 Set For Vote
As Congress navigates these discussions, the political climate remains dynamic. While the crypto industry has historically enjoyed bipartisan support, there are concerns that partisan politics could complicate progress.
Hammond expects that some Democratic members at the upcoming hearings will focus on the Consumer Financial Protection Bureau (CFPB) and other administrative actions related to crypto.
Federal Reserve Chair Jerome Powell is also scheduled to appear before Congress this week. Discussions around cryptocurrency, particularly stablecoins, have surfaced in past hearings, and Powell’s insights could further illuminate the regulatory landscape Congress aims to finalize this year.
On the legislative front, the first crypto bill slated for vote in 2025 is expected to focus on tax issues. Senator Ted Cruz has garnered support from 30 colleagues for a proposal aimed at rolling back the IRS broker rule, which impacts decentralized finance (DeFi) operations. A vote on this measure is anticipated in the coming weeks.
As the week progresses, more announcements regarding coordination between regulatory agencies and Congress are expected. Recent efforts have highlighted an improvement in transparency and outreach from these agencies, signaling a commitment to more effective policy-making.
Featured image from DALL-E, chart from TradingView.com
