As the 2024 United States elections approach, scheduled for November 5, digital asset policy has emerged as a significant political issue, igniting discussions among pro-crypto voters. For the first time, candidates are feeling the pressure from industry executives and advocates to adopt pro-crypto policies that embrace the evolving landscape of digital currencies.
The Need for Clear Regulations
The absence of a clear and comprehensive regulatory framework for digital assets in the U.S. is increasingly concerning for lawmakers, industry participants, and voters focused on cryptocurrency. The Securities and Exchange Commission (SEC) has largely relied on enforcement actions rather than creating defined rules, leaving many in the industry seeking clarity and guidance.
Understanding a candidate’s stance on cryptocurrency policy is crucial, especially as various pieces of legislation are currently under consideration in Congress. Here are some of the most significant bills shaping the future of digital assets:
1. Financial Innovation and Technology for the 21st Century Act (FIT21)
Introduced by Congressman Glenn Thompson in 2023, FIT21 aims to create a comprehensive regulatory framework for digital assets. The bill proposes that sufficiently decentralized assets fall under the jurisdiction of the Commodity Futures Trading Commission (CFTC). Key criteria for decentralization include:
- No individual having unilateral authority over the blockchain or its usage.
- No issuer or related party controlling more than 20% of the digital asset or its voting power.
While this bill passed the House in May 2024, it still requires Senate approval before reaching the President’s desk.
2. CBDC Anti-Surveillance State Act
This legislation, introduced by Rep. Tom Emmer, seeks to prevent the Federal Reserve from creating a consumer-facing central bank digital currency (CBDC) or maintaining accounts for individuals. As CBDCs are criticized by many in the crypto community, this bill has gained traction, passing in the House and awaiting a Senate vote.
3. Clarity for Payment Stablecoins Act of 2024
Reintroduced by Rep. Patrick McHenry, this bill aims to establish a regulatory framework for U.S. dollar stablecoins. A notable update in this version allows state-level regulation for stablecoin issuers with market capitalizations below $10 billion. Although the previous version reached the House floor, it has yet to pass.
