As the 2024 U.S. elections approach, digital assets have emerged as a significant political topic for the first time. Industry leaders and advocates are actively urging candidates to adopt policies that favor the sector and acknowledge the future of finance. However, a clear and cohesive regulatory framework for digital assets in the United States remains out of reach. Regulatory bodies, such as the Securities and Exchange Commission (SEC), continue to operate through enforcement actions rather than through established rulemaking processes. This fragmented approach raises concerns among lawmakers, service providers in the industry, and cryptocurrency-focused voters.
Understanding a candidate’s position on cryptocurrency policy is crucial for voters, but they must also be aware of the legislative measures currently under consideration in both the House and Senate. Below are the significant legislative proposals currently being debated.
### Financial Innovation and Technology for the 21st Century Act
The Financial Innovation and Technology for the 21st Century Act (FIT21), introduced by Pennsylvania Congressman Glenn Thompson in 2023, seeks to create a comprehensive regulatory framework for digital assets by placing sufficiently decentralized assets under the oversight of the Commodity Futures Trading Commission (CFTC). The bill outlines specific criteria for what constitutes sufficient decentralization. Additionally, it grants the SEC the authority to regulate digital assets identified as securities. As of May 2024, the bill has passed in the House and awaits Senate approval before reaching the President’s desk.
### CBDC Anti-Surveillance State Act
Initially proposed by Minnesota Rep. Tom Emmer in 2023, the CBDC Anti-Surveillance State Act aims to prevent the Federal Reserve from developing a consumer-facing central bank digital currency (CBDC) or maintaining individual accounts. The legislation also seeks to restrict the Federal Reserve from using a CBDC for monetary policy implementation or from issuing one altogether. CBDCs have faced considerable opposition from the crypto community, advocates for personal freedoms, privacy supporters, and commercial banks. The bill cleared the U.S. House in May 2024 and is now awaiting a Senate vote.
### Clarity for Payment Stablecoins Act of 2024
The Clarity for Payment Stablecoins Act is a reintroduction of a similar 2023 bill by Rep. Patrick McHenry that aims to establish a thorough regulatory framework for U.S. dollar stablecoins. A notable change in the new draft allows stablecoin issuers with a market capitalization below $10 billion to be regulated at the state level rather than federally. The previous version of this bill reached the House floor but has yet to pass in either chamber. Senators Lummis and Gillibrand also introduced a comparable proposal in the Senate in April 2024 to create a stablecoin regulatory framework.
### Digital Asset Anti-Money Laundering Act
Proposed by Massachusetts Senator Elizabeth Warren in July 2023, the Digital Asset Anti-Money Laundering Act suggests that digital asset providers should adhere to the same reporting standards as traditional financial institutions under the Bank Secrecy Act. Warren is known for her critical stance on the crypto industry, and this bill has faced significant backlash for being one of the most anti-crypto proposals currently under review. It has not yet passed in either chamber of Congress and even lost support from its co-sponsor, Republican Senator Roger Marshall, in July 2024.
### Financial Technology Protection Act of 2023
The Financial Technology Protection Act of 2023, put forth by Iowa Rep. Zachary Nunn, proposes the formation of the Financial Technology Working Group to tackle illicit financial activities related to terrorism and organized crime within emerging financial technologies. Earlier in 2024, the bill was approved by the U.S. House of Representatives and has been forwarded to the Senate for consideration.
### Equal Opportunity for All Investors Act
Introduced by Nebraska Congressman Mike Flood in April 2023, the Equal Opportunity for All Investors Act seeks to broaden the definition of an “accredited investor,” thereby lowering the barriers for participation in private securities sales and offerings. Specifically, the bill would enable individuals to qualify as accredited investors by passing a knowledge assessment administered by the SEC. In 2020, the SEC revised its criteria to prioritize financial knowledge over net worth, income, or wealth. The Equal Opportunity for All Investors Act has passed the House but is still pending in the Senate.
### The Blockchain Regulatory Certainty Act
Rep. Tom Emmer, a strong advocate for cryptocurrency, submitted the Blockchain Regulatory Certainty Act to the U.S. House of Representatives in March 2023. The primary objective of the bill is to exempt blockchain developers and service providers from traditional financial reporting requirements, provided they do not handle customer funds. The bipartisan bill received approval from the House Financial Services Committee in July 2023 and has advanced to the House floor, but it has yet to be passed in either chamber of Congress.
### Keep Your Coins Act
In July 2023, Ohio Congressman Warren Davidson introduced the Keep Your Coins Act, which aims to protect consumers by restricting regulatory agencies from obstructing U.S. citizens’ ability to use self-custodial wallets for transactions. The future of this bill remains uncertain, and it is unclear whether it will gain traction or widespread support.