The U.S. mid-term elections on Nov. 8 will not only decide the composition of the US Congress, but also the future of crypto legislation.
The elections are held every two years to elect representatives for the House of Representatives and the Senate. And since these houses are law-making bodies, crypto legislation is a crucial waitlist for the mid-term.
Bipartisan Congress and crypto legislation
A report by Bloomberg predicts, based on pollster numbers, that Republicans could gain a majority in the houses. With Biden leading for at least two more years, the government and Congress could remain partisan on virtual asset legislation.
Former House Agriculture Committee Chairman Mike Conaway expressed optimism that talks won’t be derailed. Even if there is a divided government in the coming year.
Conaway, who currently represents companies dealing in digital assets, told the media outlet that most aspects of the cryptocurrency industry have remained reasonably bipartisan. He claimed that approving this legislation would be an “easy triumph” for the White House. While Congress would demonstrate to the public that Democrats and Republicans could still cooperate.
Crypto lobbying by-election contributions
According to recent research by OpenSecrets, cited by The Wall Street Journal (WSJ), crypto companies and their staff have contributed $73 million to the 2022 elections. Which is up from $13 million donated in the 2020 cycle. Additionally, the industry spent more on lobbying in the first nine months of this year ($15 million) than it did in the preceding eight years.
“These midterms are the most important elections for this crypto community,” Hermine Wong, policy director at Coinbase, told WSJ, adding, “We believe that the legislators who will be coming in this cycle will be able to finally draft legislation to govern this space.”
Cryptocurrency political action groups have also been a voice in this election (PACs). While many have emerged to support pro-crypto candidates, only a few have already participated in the primaries for this election. Additionally, they have been distributed relatively equitably, as BeInCrypto previously noted.
Legislations of 2023
That said, crypto and stablecoin regulations are expected to be finalized by the first half of next year. U.S. Rep. Patrick McHenry (R-N.C.), a member of the House Financial Services Committee, is optimistic that the stablecoin legislation will soon be passed.
Concerning regulations, Mauricio Di Bartolomeo, chief strategy officer, and co-founder at Ledn, told MarketWatch, “I don’t think that that would be a crypto-specific issue. I think it’s going to slow down regulation in general,”
Republican Representative Pete Sessions reportedly stated, “… The White House is telling Congress they don’t need us to do anything regarding legislation for digital assets at this time.”
Two weeks back, the House of Commons voted in favor of a parliamentary proposal to bring crypto under the banner of regulated financial services. In October, The Financial Stability Oversight Council (FSOC) asked Congress to close loopholes in crypto legislation and address the risks with the asset class.
Notably, Biden signed an executive order earlier this year. Which focuses on “Ensuring Responsible Development of Digital Assets.” However, regulatory gaps around trading and supervision still exist.
The Commodities Futures Trading Commission and the SEC haven’t had an official bifurcation of duties to overlook the sector. Therefore, the elections and the coming year are essential to decide the course of crypto regulation.
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