U.S. Cryptocurrency Legislation Potential in 2023

U.S. lawmakers are poised to advance cryptocurrency legislation as 2023 arrives, potentially fostering more support for bills in a pro-crypto Congress following President-elect Donald Trump's commitments.

Key Legislative Developments

House Financial Services Committee Chair, Rep. French Hill, R-Ark., is expected to lead the charge on crypto legislation. Hill has previously worked on bills involving stablecoins and market structures, indicating a continuity of effort into the new Congress.

Hill expressed that both FIT21 and stablecoin legislation will remain top priorities if not passed during the lame duck session. According to Ron Hammond, director of government relations at the Blockchain Association, lawmakers expect to swiftly reintroduce familiar bills within the first few months of 2023.

Stablecoin Legislation

Efforts to pass a stablecoin bill continue, with Democratic Rep. Maxine Waters also involved in long-standing discussions since 2022. Despite challenges in the past, including concerns over state vs. federal regulatory authority, there is optimism for reintroduction of this legislation, particularly under a Republican-led House.

On the Senate side, a similar bill by Sen. Bill Hagerty, R-Tenn., is being drafted, signaling potential for a collaborative approach.

FIT21 Overview

FIT21 aims to provide the Commodity Futures Trading Commission (CFTC) with enhanced supervision capabilities over crypto markets. Adjustments regarding the regulatory framework are anticipated given upcoming changes in leadership at the SEC and CFTC.

Legislative Landscape and Challenges

The looming expiration of the Tax Cuts and Jobs Act will shift legislative priorities in 2023. A bipartisan initiative to clarify taxation rules for staking rewards is also in the pipeline. Additionally, proposals like creating a strategic Bitcoin reserve may resurface, despite lacking bipartisan support.

Sen. Elizabeth Warren’s new position on the Senate Banking Committee may complicate the passage of crypto legislation, presenting potential obstacles in gaining support within the influential committee.

Conclusion

As lawmakers gear up for the 2023 legislative session, there's renewed hope for advancing comprehensive cryptocurrency legislation amid a shifting political landscape, drawing both optimism and skepticism from industry experts.