U.S. Congressman Tom Emmer expresses optimism about the passage of the Financial Innovation and Technology for the 21st Century Act (FIT21) during the current Congressional session. Emmer discusses bipartisan support for crypto, potential changes in the SEC's stance, and the controversial nature of central bank digital currencies (CBDCs) at the 2024 Consensus event.
U.S. Congressman and House Majority Whip Tom Emmer conveyed a sense of optimism regarding the passage of the Financial Innovation and Technology for the 21st Century Act (FIT21) during the current Congressional session. Speaking at the 2024 Consensus event, Emmer highlighted the growing bipartisan support for cryptocurrency legislation, indicating a significant shift in the political landscape.
Bipartisan Momentum for Cryptocurrency
Emmer emphasized that cryptocurrency transcends traditional partisan divides, framing it as an issue of individual empowerment versus administrative control. He noted that both political parties are increasingly moving toward supporting crypto, although at different paces. Specifically, he pointed out that Senate Majority Leader Chuck Schumer and 70 other Democrats' support for overturning the Securities and Exchange Commission’s (SEC) controversial SAB 121 crypto rule is a strong indication of this shift. Emmer interpreted this as a sign that the influence of crypto opponents like Senator Elizabeth Warren, SEC Chair Gary Gensler, and the White House might be waning.
“Warren drives a lot of decisions in the White House,” Emmer repeatedly complained, suggesting that her influence might be diminishing as more Democrats support pro-crypto legislation.
The FIT21 bill, which aims to provide a comprehensive regulatory framework for digital assets, has already passed in the House of Representatives on May 22. Emmer expressed hope that Schumer might introduce the bill into the Senate. However, he acknowledged the potential hurdles, such as the Senate making amendments and sending it back to the House, which could delay its passage.
Emmer also speculated that the bill might find more success during the lame-duck session, the period after the next elections but before the new legislators take office, when outgoing members might be more inclined to pass it.
Emmer was not surprised by the SEC’s recent approval of spot Ether exchange-traded funds, considering the agency’s recent reversals in its stance on crypto. He suggested that SEC Chair Gary Gensler might be “on his way out,” cautioning against trusting a “cornered animal.”
Looking ahead, Emmer envisioned a pivotal role for stablecoins in the digital assets space. He predicted that the development of a “solid, stable stablecoin that can be traded anywhere around the world” would propel the digital asset space to unprecedented levels.
Turning his attention to the Federal Reserve, Emmer criticized Fed Chair Jerome Powell's approach to digital assets, describing him as being “from the past” and unable to foresee the potential of the digital asset space. Emmer argued that the Federal Reserve is “confused” about its ability to develop and implement a central bank digital currency (CBDC), despite President Joe Biden’s Executive Order on Ensuring Responsible Development of Digital Assets. Powell has consistently stated that a CBDC would not be issued without Congressional authorization.
The House's recent passage of the CBDC Anti-Surveillance State Act on May 23 underscored the political potency of this issue. Emmer compared a potential CBDC to a “Chinese Communist Party-style surveillance tool,” emphasizing the need for any digital cash to emulate physical cash in its openness and privacy protections.
Emmer's remarks at the Consensus 2024 event highlight a transformative period for cryptocurrency legislation in the United States. With bipartisan support building and key figures like Schumer backing pro-crypto measures, the FIT21 bill stands a significant chance of passing in the current Congressional session. Emmer’s insights underscore the complex interplay between legislative efforts, regulatory bodies, and the evolving landscape of digital assets, hinting at a promising future for the crypto industry if the bill succeeds.
(DEREK ANDERSEN, COINTELEGRAPH, 2024)