Representative French Hill, chair of the House digital assets subcommittee, expressed optimism that two key cryptocurrency bills could advance in Congress before the current session concludes. Speaking virtually at DC Fintech Week on October 22, he noted the importance of evaluating what’s achievable during this “lame duck” period.
Hill highlighted two significant pieces of legislation: the Financial Innovation and Technology for the 21st Century Act (FIT21), which establishes a regulatory framework for digital assets, and a bill focused on stablecoins. He stated, “I’m still optimistic that FIT21 and the stablecoin bill have possible consideration in the lame duck.”
The lame duck session occurs after an election but before the new Congress is seated. This year’s elections are scheduled for November 5, with the new Congress starting in January.
The crypto industry is keenly monitoring the progress of these bills. FIT21 aims to grant more regulatory authority to the Commodity Futures Trading Commission (CFTC), which is perceived as a more crypto-friendly regulator. The stablecoin bill seeks to create a comprehensive regulatory framework for stablecoins, which are currently governed by state-level money transmitter laws.
Despite the House passing FIT21 in May, it has faced delays in the Senate banking committee. Similarly, the stablecoin framework bill, passed by the House Financial Services Committee led by Patrick McHenry in July, has also stalled.
“All lame duck sessions take direction from who wins the top of the ticket,” Hill remarked, suggesting that election outcomes will influence legislative priorities.
He emphasized that any movement on these bills may hinge on the outgoing Congress passing final legislation, including the National Defense Authorization Act (NDAA). “That’s an interesting opportunity for Chairman McHenry to consider a financial services priority attached to the NDAA,” Hill noted.
If the current Congress fails to advance the crypto legislation, he indicated that it would become a top priority in the next Congress.
CFTC Chair Rostin Behnam expressed frustration over the ongoing stall in crypto regulatory discussions but remained hopeful for progress with a new president and Congress, although he doesn’t anticipate any changes before the year ends.
Tether CEO Paolo Ardoino echoed these sentiments at DC Fintech Week, stating that he believes the U.S. is “dropping the ball” on crypto and expressed hope for “sensible crypto regulations” to be implemented, regardless of the election outcomes.
The upcoming elections on November 5 will determine the president, vice president, all 435 House seats, and 34 of the 100 Senate seats. Current polls from FiveThirtyEight show a tight race between Democrat Kamala Harris and Republican Donald Trump, with Harris leading by just 1.7 percentage points. Voter preferences for the next House and Senate also remain close, with Democrats ahead by only 1.3 percentage points.
