As the 2024 US elections approach, the topic of digital assets has emerged as a significant political issue for the first time, with industry leaders and advocates urging candidates to adopt pro-crypto policies and fully embrace the evolution of currency.
In the United States, the quest for a clear and comprehensive digital asset regulatory framework continues to be a challenge. Regulatory bodies such as the Securities and Exchange Commission (SEC) often resort to enforcement actions instead of establishing formal rules. This lack of a coherent regulatory structure raises concerns among lawmakers, industry stakeholders, and crypto-oriented voters.
While understanding a candidate’s position on cryptocurrency policy is essential, voters should also be aware of the key legislative proposals currently under consideration in Congress. Below are the notable pieces of legislation that are being discussed:
**Financial Innovation and Technology for the 21st Century Act**
Introduced by Congressman Glenn Thompson of Pennsylvania in 2023, the Financial Innovation and Technology for the 21st Century Act (FIT21) seeks to create a comprehensive regulatory framework for digital assets, ensuring that sufficiently decentralized assets fall under the jurisdiction of the Commodity Futures Trading Commission (CFTC). The bill outlines specific criteria for what constitutes sufficient decentralization. Additionally, it grants the SEC the authority to oversee digital assets classified as securities. The bill passed in the House in May 2024 and now awaits Senate approval before being sent to the President.
**CBDC Anti-Surveillance State Act**
Minnesota Representative Tom Emmer introduced the CBDC Anti-Surveillance State Act in 2023. This legislation intends to prevent the Federal Reserve from developing a consumer-facing central bank digital currency (CBDC) or maintaining individual accounts. Furthermore, it aims to restrict the Federal Reserve from using a CBDC for monetary policy implementation or issuing one altogether. CBDCs have faced substantial criticism from the crypto community, advocates for liberty and privacy, as well as commercial banks. The bill passed in the House in May 2024 and is pending a Senate vote.
**Clarity for Payment Stablecoins Act of 2024**
The Clarity for Payment Stablecoins Act represents the reintroduction of a 2023 bill by Representative Patrick McHenry, aiming to establish a regulatory framework for U.S. dollar-backed stablecoins. A significant change in this new draft allows stablecoin issuers with a market capitalization below $10 billion to be regulated at the state level, rather than federally. The previous version of this bill advanced to the House floor but has yet to be passed by either chamber. In April 2024, Senators Lummis and Gillibrand also introduced a similar bill in the Senate to create a stablecoin regulatory framework.
**Digital Asset Anti-Money Laundering Act**
First proposed by Senator Elizabeth Warren of Massachusetts in July 2023, the Digital Asset Anti-Money Laundering Act suggests that digital asset providers be subject to the same reporting obligations as traditional financial institutions under the Bank Secrecy Act. Warren is well-known as a critic of the crypto industry, and this particular bill has faced significant backlash for being one of the most restrictive pieces of legislation on the table. The bill has not yet passed in either chamber of Congress and lost support from its co-sponsor, Republican Senator Roger Marshall, in July 2024.
**Financial Technology Protection Act of 2023**
Proposed by Iowa Representative Zachary Nunn, the Financial Technology Protection Act of 2023 establishes the Financial Technology Working Group to tackle illicit financing related to terrorism and organized crime within emerging financial technologies. Earlier in 2024, this bill passed in the House and is currently under Senate consideration.
**Equal Opportunity for All Investors Act**
Introduced by Congressman Mike Flood of Nebraska in April 2023, the Equal Opportunity for All Investors Act seeks to broaden the definition of an “accredited investor,” thereby lowering the barriers for participation in private securities offerings. Specifically, this bill would allow individuals to qualify as accredited investors by passing a knowledge test administered by the SEC. In 2020, the SEC revised its criteria for accredited investors to focus on financial knowledge instead of net worth, income, or wealth. This Act has passed in the House but is still pending in the Senate.
**The Blockchain Regulatory Certainty Act**
Rep. Tom Emmer, a strong advocate for cryptocurrency, introduced the Blockchain Regulatory Certainty Act to the House in March 2023. This bill aims to exempt blockchain developers and service providers from conventional financial reporting requirements, provided they do not handle customer funds. The bipartisan bill received approval from the House Financial Services Committee in July 2023 and has moved forward in the House but has yet to pass in either chamber.
**Keep Your Coins Act**
Ohio Congressman Warren Davidson introduced the Keep Your Coins Act in July 2023 as a consumer protection measure designed to prevent regulatory bodies from hindering U.S. citizens’ use of self-custodial wallets for transactions. At this time, it remains uncertain whether this bill will be enacted or gain widespread support.