Republicans Maintain Control of the U.S. House of Representatives

Republicans have retained control of the U.S. House of Representatives, opening the door for cryptocurrency-friendly lawmakers to spearhead digital asset legislation.

According to The Associated Press, Republicans secured a majority with 218 members, while Democrats maintained 208 seats.

This majority positions Republicans to lead the House Financial Services Committee, an influential committee overseeing the U.S. Securities and Exchange Commission, the Federal Reserve, and other federal agencies. Current chair, Rep. Patrick McHenry (R-N.C.), is slated to retire in January 2025, creating an opportunity for a new leader.

McHenry played a critical role in advancing a bill to regulate stablecoins and legislation regarding the structure of the crypto market. This legislation provides new authority to the Commodity Futures Trading Commission over "digital commodities" while asserting that the SEC would regulate digital assets linked to investment contracts.

A new chair is expected to be appointed this month or by December. Potential candidates include Reps. French Hill from Arkansas, Andy Barr from Kentucky, Bill Huizenga from Michigan, and Frank Lucas from Oklahoma, all of whom are supportive of crypto initiatives. Hill, notably, chairs the panel focusing on digital assets and is pushing for the passage of crypto-related bills, including those concerning stablecoins.

A Republican-led committee is anticipated to prioritize stablecoins and market structure, followed by decentralized finance (DeFi) and non-fungible tokens (NFTs), according to Ron Hammond, director of government relations at the Blockchain Association.

Maxine Waters of California, the ranking Democrat on the House Financial Services Committee, has also advocated for a stablecoin bill and is eager to see it passed potentially before the end of 2024.

During a congressional hearing in September, Waters called for a "grand bargain on stablecoins" before the year's end. She stated, "I've made a public statement to you about bipartisanship — let's see what you do with it," directed at McHenry during that session.