U.S. Crypto Lobby Triumphs in Congress

U.S. crypto lobbyists are celebrating as recent congressional votes indicate strong support for the industry, signaling a shift from past struggles against regulation.

The crypto sector, once facing stigma, now enjoys allies in both the White House and U.S. financial agencies. Recent Senate and House votes regarding an IRS rule show that bipartisan support exists: many Democrats joined Republicans in opposing the regulation requiring decentralized finance (DeFi) projects to act as brokers and handle extensive tax reporting.

This demonstrates a significant shift in Democratic lawmakers’ stance on crypto issues, with advocates noting the potential for less compromise in future negotiations. Kristin Smith, CEO of the Blockchain Association, stated that the industry can now focus on more ambitious federal policies rather than just defense against regulatory pressure.

The imminent legislation regarding U.S. stablecoin issuers shows promise, with both House and Senate versions nearing completion. The growing bipartisan cooperation may lead to other favorable outcomes for crypto.

The push for clear regulations regarding crypto trading and transactions remains a key focus for the industry, which aims to eliminate legal ambiguities federal agencies face when attempting to apply existing laws. Previous legislative efforts like the Financial Innovation and Technology for the 21st Century Act (FIT21) have laid the groundwork for this conversation.

The recent elections brought pro-crypto lawmakers into Congress, supported by Fairshake, a political action committee that has spent significantly to back candidates across party lines. Fairshake has substantial financial resources available for continued support, seeking to incentivize lawmakers to advocate for crypto-friendly positions.

Coinbase’s CEO, Brian Armstrong, and Fairshake’s Josh Vlasto acknowledge the industry’s commitment to this political strategy, asserting the importance of fostering positive legislative environments for growth and regulation. As crypto becomes more mainstream, voter experiences with cryptocurrencies are influencing regulatory attitudes, contributing to the establishment of the most pro-crypto Congress to date.