The government, which started the 119th session of the American Congress today, will examine the clarification of regulatory requirements for stablecoins and the creation of a framework that will decide whether crypto companies will be supervised by the CFTC or SEC.
Market Structure and Stablecoins
In the last congressional session, two bills on stablecoins and general market structure were among the most notable crypto-related issues. Representative French Hill, Chairman of the Financial Services Committee, aims to pass both bills out of committee within the first 100 legislative days. Senate Banking Committee Chairman Tim Scott, House Agriculture Committee Chairman Glenn Thompson and Senate Agriculture Chairman John Boozman also expressed their support for the passage of these bills. It is anticipated that bills generally emerge from committees and are then put to a vote.
“We must be faster.” -Marta Belcher
Most policy advocates expect stablecoin legislation to come first. Because Republican and Democratic members almost reached an agreement on the stablecoin issue last year. The biggest debate is whether stablecoins will be backed one-to-one by the US dollar.
Bitcoin Reserve
Legal experts say Treasury’s Bitcoin $96,525.2Opinions are divided on whether Congressional support is needed to keep the currency as the national reserve currency.
“Trump wants to hold existing Bitcoin but does not seem to have a goal of making new purchases.” -Dennis Porter, Founder of Satoshi Action Fund.
The Bitcoin Reserve Act, introduced by Wyoming Senator Cynthia Lummis last year, failed to gain sufficient support. Castle Island Ventures General Partner Nic Carter stated that there are not enough members of Congress to pass such a bill. Digital Chamber CEO Perianne Boring stated that such a law could be passed, but not within the first 100 days.
Political Accounts
Members of Congress are under political pressure to pass legislation ahead of the 2026 midterm elections. Crypto industry donations to political campaigns influenced election results last November, with the largest Policy Action Committee, Fairshake, raising millions of dollars for the midterm elections. No one can afford to take an anti-crypto stance when running for a competitive seat.
Blockchain Association Chairman Dave Grimaldi stated that the new Republican majority in the Senate, together with the Democrats, wants an easy and fast process. However, it could take more than a year for crypto laws to change among members of Congress.
It will take a long time for bills such as the Financial Innovation and 21st Century Technologies Act (FIT21) to be implemented and new rules to be established. Blockchain Association CEO Kristin Smith stated that the rulemaking process could take approximately 18 months.
As a result, it may take another year or several years for the laws covering the crypto industry to change. This means crypto markets will need to adapt given the rapid pace at which the government is moving.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
