June 16, 2024
Crypto Legislation Stalled in U.S. House Amidst Republican Speaker Disarray
Policy & Regulation

Crypto Legislation Stalled in U.S. House Amidst Republican Speaker Disarray

If Republicans can’t unite around majority pick Steve Scalise—or any alternative—after the party’s removal of Speaker of the House Kevin McCarthy (R-Calif.) stalled the congressional agenda, the U.S. House of Representatives won’t resume work on crypto legislation.

Rep. Scalise (R-La.), the GOP choice to succeed him, may not get the 217 votes required to be elected speaker in a floor vote as a few Republican legislators publicly declared their support for a rival candidate on Wednesday. Majority Whip Tom Emmer (R-Minn.), who is presently in third place in the House, is unable to challenge Scalise for majority leader, which may advance one of Congress’ most ardent supporters of cryptocurrency.

Rep. Patrick McHenry (R-N.C.), the acting speaker, is prevented from taking over as chairman of the House Financial Services Committee, which has been guiding the main crypto legislation this year, due to Scalise’s questionable status. Industry lobbyists have claimed that when Republicans choose a speaker, McHenry may have gained some support for leading the party, and he might use some of that support to secure floor votes for two crypto measures that passed his subcommittee.

The House was somewhat in turmoil when Kevin McCarthy, the Speaker of the House, was abruptly removed last week. There were certain resentments in the party following the selection of Scalise on Wednesday over Rep. Jim Jordan (R-Ohio), who was the preferred choice of former President Donald Trump and his allies in Congress. Some Jordan backers declared on X.com that they would continue to support him over Scalise, and at least one of them objected to Scalise’s stance on the budget.

“I let Scalise know in person that he doesn’t have my vote on the floor because he has not articulated a viable plan for avoiding an omnibus,” Rep. Tom Massie tweeted on X.

Jordan reportedly offered to nominate Scalise himself on the House floor, and some of the Republicans who protested McCarthy, including Reps. Matt Gaetz (R-Fla.) and Tim Burchett (R-Tenn.), have said they will vote for Scalise, so it’s still possible to move the remaining members of that conservative bloc.

The unpredictability of speakership is one of the main current barriers to crypto growth for the digital assets sector. The next impediment will likewise be the priority of a new speaker: financing the federal government. To keep the government running, Congress has until November 17 to come up with a budget plan, which might include another short-term extension.

After that, assuming Scalise didn’t make any additional significant legislative commitments to win support in the speaker vote, legislators may resume their regular legislative activities, which may include considering laws about digital assets. In the House, there are two pieces of legislation with a focus on cryptocurrencies. One would provide governmental safeguards for stablecoins produced in the United States, while the other would create a comprehensive system of rules for the crypto markets.

Even if one or both of the pieces of legislation are finally approved by the House, their future in the Senate is still uncertain. Sen. Sherrod Brown (D-Ohio), the chairman of the Senate Banking Committee, and other prominent senators are harsh critics of the sector.

Image: Wallpapers.com

Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.

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