After the Election, US Congress Will Gather for Cryptocurrencies – Here’s All You Need to Know

With Congress set to reconvene after the upcoming US elections, cryptocurrency laws is predicted to regain momentum after an extended marketing campaign hiatus.

Ron Hammond, Director of Authorities Relations on the Blockchain Affiliation, outlined key developments and challenges lawmakers will face once they meet once more.

Publish-election rush for crypto regulation

Congress has been on a marketing campaign hiatus for the previous month, placing a pause on legislative work on cryptocurrency. Hammond famous that this era of inaction will finish after the election. Nevertheless, with simply 5 weeks left within the session, the finalization of election outcomes might play an important position in shaping the agenda for the sluggish session.

“If the election outcomes usually are not finalized by the point Congress returns, it might derail many plans,” Hammond warned, noting that the jam-packed legislative agenda consists of funding payments, protection and agriculture payments, catastrophe reduction and probably stablecoin regulation consists of.

Stablecoin regulation: a good timeline

Hammond famous that there’s bipartisan momentum to move stablecoin laws, however there’s nonetheless no remaining deal on the desk. He added that if the laws doesn’t move this yr, there’ll nonetheless be optimism for 2025.

“The election outcomes will pave the way in which for what is feasible throughout a sluggish session. If stablecoins don’t attain the end line this yr, it’s going to probably be as a consequence of political elements or time working out,” he mentioned, referring to the same scenario two years in the past when stablecoin laws was on the desk. A significant growth in October included Senator Invoice Hagerty’s launch of a draft for a stablecoin dialogue, which Hammond cited as a serious speaking level amongst Home leaders.

Hagerty is rumored to be Donald Trump’s nominee for Treasury Secretary if he wins the election, highlighting the potential for future modifications in stablecoin coverage.

Tether and broader market points

Hammond additionally addressed latest considerations surrounding Tether following a Wall Avenue Journal report a couple of doable investigation by New York authorities. Tether’s CEO has denied the allegations, however Hammond advised it was an necessary subject to observe, particularly given Howard Lutnick’s position within the Trump marketing campaign and Cantor Fitzgerald’s affect on Tether.

Belief within the Professional-Crypto Congress

Wanting past 2024, Hammond expressed confidence in an rising ‘pro-crypto congress’. He pointed to the excessive success charge of pro-crypto candidates from each events throughout the primaries, with some races that includes pro-crypto candidates from each the Democratic and Republican events.

“As Politico famous final week, subsequent yr’s congress would be the most ‘pro-crypto congress’ but,” he mentioned. This shift means that stablecoin laws is extra prone to move, even when it does not occur in 2024.

Broader cryptocurrency regulation on the horizon

Hammond famous that crypto laws in 2025 is not going to be restricted to stablecoins. A significant tax invoice will probably embrace provisions associated to cryptocurrencies, and there’s additionally an effort to finalize market construction and NFT regulation. Decentralized finance (DeFi) can be anticipated to realize extra consideration.

*This isn’t funding recommendation.