Republican Representative Mike Flood, a quiet second-term politician from Nebraska, might seem an unlikely figure to influence cryptocurrency policy in Congress. However, in May, he played a key role as his colleagues took historic action by voting to pass two measures that would establish regulations for the industry for the first time.
This achievement was the result of Flood’s efforts, as he cosponsored both pieces of legislation, along with a small group of colleagues. They managed to secure a surprising amount of bipartisan support for both the Financial Innovation and Technology for the 21st Century Act (FIT21) and another proposal that aimed to repeal a Securities and Exchange Commission rule known as SAB-121.
In an interview with Cointelegraph, Flood expressed his surprise at the 71 votes from House Democrats in support of FIT21. This measure would enable cryptocurrency projects to “certify” that their tokens are commodities, removing them from the SEC’s regulatory oversight and placing them under the Commodity Futures Trading Commission.
Flood, 49, joined Congress in July 2022 after winning a special election, giving him only a small amount of seniority over his fellow freshman colleagues. However, his previous decade-long experience in the Nebraska Legislature, including six years as its speaker, provided him with an advantage. This background may have contributed to his appointment to the House Financial Services Committee, where he sits on the subcommittee for digital assets and financial technology.
When asked about his interest in cryptocurrency, Flood mentioned his work as a member of the Nebraska Legislature Banking Committee and his introduction of the Nebraska Financial Innovation Act. He emphasized his goal to maintain the dual-banking system and the state’s role in issuing stablecoins, which sparked his interest in the subject.
Regarding the response from his constituents in Nebraska, Flood acknowledged that while cryptocurrency is on their radar, it is more popular among younger demographics. He highlighted the interest of business students at the University of Nebraska in digital assets and emphasized the importance of states’ rights in the regulation of cryptocurrency.
When discussing the biggest stars in Congress involved in crypto policy, Flood mentioned Rep. French Hill and Rep. Warren Davidson, recognizing their expertise and advocacy for digital assets. He expressed his surprise at the support received from House Democrats for FIT21 and emphasized the growing interest in cryptocurrency among Americans and financial institutions.
Flood also addressed the issue of members of Congress trading stocks or cryptocurrencies. He emphasized the importance of ethical conduct and the need to prevent insider trading among lawmakers. When asked about the focus of the next Congress, Flood highlighted the significance of artificial intelligence, cybersecurity, and the need for favorable executive branch guidance on cryptocurrency legislation.
In a discussion about stablecoins, Flood emphasized the importance of a state pathway and the role of states in regulating digital assets. He advocated for allowing state-chartered banks to engage in stablecoin activities, emphasizing the diversity and dynamism of the American financial system.
Overall, Flood’s insights and positions reflect his dedication to advocating for cryptocurrency policies that balance innovation, consumer protection, and states’ rights. This interview provides a glimpse into the bipartisan efforts and growing momentum in Congress to establish comprehensive regulations for the cryptocurrency industry.