The evolving landscape of cryptocurrency has prompted calls for more robust regulation. Recent discussions highlight the necessity for reforms to be enacted through Congress, as emphasized by former Congressman Wiley Nickel in an interview with Cointelegraph. According to Nickel, true and lasting change can only occur if legislation moves through the formal legislative process.
Nickel argues, “If you want lasting change in Washington, you must move legislation through Congress. Otherwise, if you’re talking about executive orders, it will just go back and forth.” This sentiment stems from frustrations observed with recent regulatory actions, particularly those involving the SEC under Gary Gensler.
The recent historical context shows a pattern of executive actions that can be easily reversed. For instance, President Trump’s executive orders established a Working Group on Digital Assets and prohibited the development of a Central Bank Digital Currency (CBDC). However, these measures lack permanence without the backing of congressional legislation.
Momentum in Congress for Meaningful Legislation
As discussed during the Blockworks Digital Asset Summit, there is growing momentum among members of Congress to address crypto regulations meaningfully. Representative Tom Emmer has reintroduced legislation to ban a CBDC in the U.S., echoing concerns about government control over digital currencies.
Moreover, Senator Cynthia Lummis is pushing forward with her Bitcoin Act, which proposes significant measures to allow the U.S. to acquire a substantial amount of Bitcoin. This initiative indicates a legislative trend towards embracing cryptocurrencies rather than stifling innovation.
In a similar vein, Rep. Byron Donalds is drafting legislation to codify the Bitcoin strategic reserve, reinforcing Trump’s earlier actions into law to prevent future reversals. The House has also shown responsiveness by repealing certain regulations, such as the IRS broker rule, requiring decentralized finance platforms to report information to the IRS.
While these measures indicate progress, the consensus among various representatives suggests that comprehensive crypto regulation could materialize in 2025. This includes anticipated bills focused on stablecoins and market structure.
As the industry continues to evolve, stakeholders are encouraged to advocate for legislation that is not only comprehensive but also enduring. The call to action is clear: for crypto regulations to hold weight and reliability, they must flow through Congress, ensuring stability in a rapidly changing financial ecosystem.
