Crypto voters guide to Congressional legislation for the 2024 election

As a seasoned researcher with a keen interest in digital assets and their impact on society, I find myself closely monitoring the evolving political landscape surrounding cryptocurrencies in the United States. With my background in economics and technology, it’s fascinating to observe how these two realms intersect in the context of the 2024 US elections.

In the lead-up to the 2024 U.S. elections, the topic of digital assets is gaining political significance for the first time. Key figures in the industry are urging presidential candidates to adopt favorable policies related to their sector, while also advocating for an openness towards the evolving concept of digital currency as a means of exchange.

Clear and comprehensive digital asset policy in the United States remains elusive, as regulators like the Securities and Exchange Commission (SEC) regulate through enforcement action, rather than rulemaking. This lack of a coherent framework is a growing concern for elected lawmakers, industry service providers, and single-issue crypto voters.

It’s crucial for voters to grasp a candidate’s viewpoint on cryptocurrency regulations, but they should also be aware of the ongoing legislative proposals in the House and the Senate that could impact these policies. Here are some significant bills being discussed:

Financial Innovation and Technology for the 21st Century Act

In 2023, Pennsylvania Congressman Glenn Thompson proposed the Financial Innovation and Technology for the 21st Century Act (FIT21), aiming to construct a thorough regulatory structure for digital assets. This act seeks to encompass sufficiently decentralized assets under the jurisdiction of the Commodity Futures Trading Commission (CFTC). The key characteristics that define sufficient decentralization, as outlined in this bill, are:

“If, among other requirements, no person has unilateral authority to control the blockchain or its usage, and no issuer or affiliated person has control of 20% or more of the digital asset or the voting power of the digital asset.”

Yet, this legislation grants the Securities and Exchange Commission (SEC) power to oversee digital assets classified as securities. The bill was approved in the House of Representatives in May 2024 and now awaits approval in the Senate before being sent to the President for review.

CBDC Anti-Surveillance State Act

Minnesota Rep. Tom Emmer first introduced the CBDC Anti-Surveillance State Act in 2023.

The intention behind this legislation is to prevent the Federal Reserve Bank from developing a central bank digital currency (CBDC) that directly serves consumers, or managing individual accounts in any capacity.

Furthermore, the proposal aims to prohibit the Federal Reserve from employing a central bank digital currency for conducting monetary policy or from releasing a central bank digital currency altogether.

Central Bank Digital Currencies (CBDCs) have garnered significant backlash from the cryptocurrency sector, libertarians, privacy enthusiasts, and conventional banking institutions. As of May 2024, the legislation for these digital currencies has been approved by the US House, waiting for a vote in the Senate.

Clarity for Payment Stablecoins Act of 2024

The Clarity for Payment Stablecoins Act is essentially a new version of a 2023 bill by Rep. Patrick McHenry, aiming to create a thorough regulatory structure for U.S. dollar-backed stablecoins within the United States.

In contrast to the previous proposal, the new draft includes a clause that permits smaller stablecoin issuers, those with a total value below $10 billion, to be managed by state-level regulation instead of federal oversight.

In simpler terms, an earlier draft of the bill moved forward to be discussed on the House floor, but it hasn’t been approved by either chamber yet. Senators Lummis and Gillibrand introduced a similar bill in the Senate back in April 2024, aiming to create a regulatory framework for stablecoins.

Digital Asset Anti-Money Laundering Act

Originating from Massachusetts Senator Elizabeth Warren in July 2023, the Digital Asset Anti-Money Laundering Proposal aims to impose the same reporting obligations on digital asset providers as are currently required of conventional financial institutions under the Bank Secrecy Act.

Warren has been a prominent critic within the cryptocurrency sector, and the proposed bill in 2023 has received substantial criticism due to being perceived as one of the most restrictive legislations regarding cryptocurrencies that is currently under review.

As of now, the legislation hasn’t been approved in either house of Congress. Moreover, it experienced a setback when one of its co-sponsors, Senator Roger Marshall (Republican), withdrew his support in July 2024.

Financial Technology Protection Act of 2023

2023’s Financial Technology Protection Act, introduced by Representative Zachary Nunn from Iowa, seeks to establish a Financial Technology Task Force whose purpose is to fight unlawful finances linked with terrorism and criminal organizations that exploit advancements in new financial technologies.

2024 marked a significant milestone for my research, as the bill I’ve been working on was successfully passed in the U.S. House of Representatives. Now, it awaits further discussion and decision in the Senate.

Equal Opportunity for All Investors Act

In a move spearheaded by Nebraska Representative Mike Flood in April 2023, the Equal Opportunity for All Investors Act aims to broaden the term “accredited investor”, making it simpler for more individuals to partake in private securities transactions and offerings.

The proposed legislation enables people to become recognized as accredited investors through a knowledge assessment conducted by the Securities and Exchange Commission (SEC).

In 2020, the SEC modified its long-standing requirements for an accredited investor to place more emphasis on financial expertise, as opposed to net worth, income, or wealth. The Equal Investment Opportunities Act was approved by the U.S. House of Representatives but is still awaiting approval in the Senate.

The Blockchain Regulatory Certainty Act

In March 2023, Representative Tom Emmer, a strong advocate for cryptocurrency, presented the Blockchain Regulatory Certainty Act to the United States House of Representatives. The main objective of this bill is to exempt developers and providers of blockchain technology from conventional financial reporting obligations, provided that they do not manage client funds directly.

In simple terms, a bipartisan piece of legislation received approval from the House Financial Services Committee in July 2023. It was then permitted to progress to the U.S. House of Representatives; however, as of now, it hasn’t been approved by either the House or the Senate (chambers of Congress).

Keep Your Coins Act

In simple terms, Ohio Representative Warren Davidson proposed the “Keep Your Coins Act” in July 2023. This act aims to shield consumers by limiting regulatory bodies from interfering with American citizens’ ability to use personal digital wallets for transactions involving self-managed assets.

At this time, it is unclear whether the bill will be passed into law or garner widespread support.

2024-11-02 00:26