Patrick McHenry, a Republican lawmaker from the United States, is urging the Senate to pass an important bill regarding cryptocurrency regulation before the upcoming presidential election in November. The bill, known as the Financial Innovation and Technology for the 21st Century Act (FIT21), was approved by the House on May 22, with support from 71 Democrats and 208 Republicans.
McHenry, who serves as the Chairman of the House Financial Services, stated in an interview with Bloomberg’s Balance of Power on May 30 that this should serve as a wake-up call for the Senate to take action on the bill. He emphasized that it is crucial for the Senate to move forward with the legislation.
The FIT21 bill aims to classify most cryptocurrencies as commodities and subject them to regulation by the Commodity Futures Trading Commission. The crypto industry generally sees the CFTC as a more favorable regulatory body compared to the Securities and Exchange Commission. However, the SEC would still retain authority over cryptocurrencies that are not adequately decentralized.
McHenry mentioned that the Senate was initially surprised by the overwhelming support the FIT21 bill received in the House. The bill faced opposition from the SEC and President Joe Biden. McHenry emphasized the importance of establishing regulated digital assets and cryptocurrencies in the United States, stating that serious policy-making is necessary.
In the Senate, the Democratic Majority Leader, Chuck Schumer, leads a caucus of 48 Democrats and three independent senators, while there are 49 Republicans. There is no specific deadline for the Senate to take action on the FIT21 bill. To pass, the bill requires a majority vote of 51 senators in favor.
McHenry revealed that he has been collaborating with Democratic Representative Maxine Waters for nearly two years to pass a stablecoin bill. He acknowledged that attaching the stablecoin bill to a larger piece of legislation would be necessary for it to pass in the Senate. However, he rejected the idea of attaching it to the SAFER Banking Act, which aims to provide cannabis companies with improved access to financial services. McHenry expressed his opposition to the cannabis banking legislation, as he has voted against it in the previous two Congresses.
McHenry stated that Republicans would exert pressure, using the most effective methods available, to ensure that Schumer and the Senate prioritize the passage of a crypto bill.
The U.S. presidential elections are scheduled for November 5.
Opinion: The maximalist stance on cryptocurrencies within the GOP is almost as concerning as the “anti-crypto army” among the Democrats.