Bitrabo Editorial
As the 2024 presidential election approaches, cryptocurrencies have emerged as a critical topic, with candidates like Vice President Kamala Harris and former President Donald Trump expressing their support for the sector.
Nonetheless, legal experts assert that the future of digital assets in the United States will ultimately be decided by Congress, not the President.
Congressional Action as the Driving Force
In a recent report, Dr. Tonya Evans from Penn State Dickinson Law discusses how Vice President Harris has shifted away from the previous administration’s negative stance toward cryptocurrencies, largely influenced by the Securities and Exchange Commission (SEC) and other regulatory bodies.
Now, Harris promotes a pro-innovation agenda, indicating that she sees blockchain and digital assets as essential for creating an “Opportunity Economy” aimed at helping middle-class families and small businesses.
On the flip side, Trump has gained attention for his commitment to positioning the US as the “crypto capital of the world” and his intention to oust SEC Chair Gary Gensler immediately if he returns to office.
Despite these bold claims, Evans contends that a President’s ability to affect real change in the cryptocurrency arena is limited.
She emphasizes that Congress possesses the substantial authority to craft the regulatory framework governing digital assets. According to Article II of the Constitution, the President lacks the power to independently create laws or amend regulations.
The President’s primary function revolves around implementing the laws passed by Congress and supervising regulatory bodies like the SEC and the Commodity Futures Trading Commission (CFTC).
Evans further notes that substantial advancements in the digital asset sector require proactive legislation from Congress. Yet, she points out that many cryptocurrency enthusiasts focus their attention on presidential elections, overlooking Congress’s crucial role in regulation.
Increasing Bipartisan Support for Crypto in Congress
Although recent congressional activity has seemed subdued, Evans highlights a significant legislative development with the enactment of the Financial Innovation and Technology for the 21st Century Act (FIT21), which incorporates Rep. Tom Emmer’s Securities Clarity Act.
This law aims to clarify matters within the digital asset environment by distinguishing between an asset and its connected securities contracts, which would be important in potential future legal cases, such as the notable case involving blockchain payments company Ripple and the SEC.
Additionally, support for crypto innovation is on the rise within Congress. Figures like Rep. Maxine Waters (D-CA), who previously opposed cryptocurrencies, now acknowledge the importance of advancing discussions around new technologies.
During a town hall, pro-crypto legislators encouraged Harris to take a more supportive stance toward digital assets, while Senate Majority Leader Chuck Schumer (D-NY) expressed hope for achieving bipartisan legislative success.
Furthermore, data from StandWithCrypto.com reveals that over 50 Democratic lawmakers, including notable names like Rep. Ro Khanna (D-CA), are now backing pro-crypto legislation.
Evans argues that for the US to remain at the forefront of cryptocurrency implementation, Congress must focus on policies that encourage innovation rather than simply modifying existing rules.
Unlike the executive branch, Congress can establish specific laws tailored to address the needs of the crypto industry. Evans concluded, “It’s essential to recognize where true authority lies—within Congress.”
Featured image from DALL-E, chart from TradingView.com