Republican Congressman Mike Flood, a reserved second-term lawmaker from Nebraska, might not seem like an obvious choice to take the lead on cryptocurrency policy in Congress. However, he was front and center in May when his colleagues made history by voting to pass two measures that would establish regulations for the industry.
Flood, who co-sponsored both pieces of legislation, along with a small group of his colleagues, managed to garner bipartisan support for both the Financial Innovation and Technology for the 21st Century Act (FIT21) and another proposal that would repeal a Securities and Exchange Commission rule known as SAB-121.
In an interview with Cointelegraph, Flood expressed his surprise at the 71 votes from House Democrats in favor of FIT21. The measure would allow cryptocurrency projects to certify that their tokens are commodities, thus moving them out of the SEC’s regulatory purview and over to the Commodity Futures Trading Commission.
Flood, 49, joined Congress in July 2022 after winning a special election, giving him minimal seniority over his freshman colleagues. However, he previously served about a decade in the Nebraska Legislature, including six years as its speaker, which provided him with experience and may have helped him secure a seat on the House Financial Services Committee.
Flood’s interest in cryptocurrency was inspired by his role in putting together the Nebraska Financial Innovation Act. He wanted to ensure that both federally chartered and state-based institutions could issue stablecoins and custody digital assets. He also noted that younger people, particularly business students, are very interested in digital assets and that there is a growing interest in cryptocurrency among people in rural areas.
He commended Rep. French Hill and Rep. Warren Davidson for their efforts and expressed hope that the stablecoins bill will follow FIT21. Furthermore, he highlighted the changing dynamics in Congress, especially the increasing support from House Democrats.
Flood emphasized the need for regulations regarding members of Congress trading stocks or cryptocurrencies, stating that industry regulators should not be actively investing in the very thing they regulate. Additionally, he discussed the priorities for the next Congress, which may focus on artificial intelligence, cybersecurity, and the implementation of FIT21 and stablecoin legislation.
He also discussed the importance of states’ rights in regulating digital assets, highlighting the need for a state pathway in the stablecoin bill to ensure that states are not excluded from this space. Flood emphasized the diversity of the U.S. financial system and the importance of allowing state-chartered banks to deal in stablecoins. He stressed the competence of states in understanding digital assets and expressed his opposition to a top-down, federal stablecoin regime.