US Congress to Prioritize Crypto Regulation Next Year

U.S. congressman French Hill is poised to prioritize crypto regulation, specifically the FIT21 Act and stablecoin bill, by next year.

Crypto enthusiasts are optimistic about the nascent asset’s potential under the upcoming administration in the United States. Regulators will have another opportunity to pass regulation for the crypto industry in 2025. 

Hill to Prioritize Crypto Regulation Next Year 

Interestingly, Rep. French Hill, the representative for Arkansas, has disclosed plans to prioritize crypto legislation, particularly the stablecoin bill and the FIT21 Act, next year.

For context, Hill will lead Congress’ House Financial Service Committee, spearheading the panel’s crypto regulation efforts. He has worked on several bills, including the FIT21 Act and a proposed regulation for stablecoins. 

Both bills have been under consideration for several months under the current administration. However, their chances of passage were minimal due to the government’s aggressive stance toward the industry. 

Odds of Pro-crypto Bill Passage Soar 

However, this stance is expected to change in the upcoming Congress, which several pro-crypto advocates dominate. Also, President-elect Donald Trump’s support for crypto is another factor that increases the odds of a pro-crypto bill passage.

The next administration will officially commence on January 20, 2025. However, federal lawmakers will have to wait about four months to settle in. Ron Hammond, head of government relations at Blockchain Association, expects Congress to reintroduce familiar bills, like the stablecoin bill and FIT21 Act. 

FIT21 Act 

This bill seeks to clarify regulatory authority over crypto, potentially specifying which regulator between the CFTC and SEC will regulate the industry. 

As reported earlier, the House passed the bill earlier this year with bipartisan support. However, the Senate’s approval remains uncertain, as changes in leadership at the SEC and CFTC are anticipated in the coming year, according to Hammond.

Hammond expects changes to be made to the bill’s regulatory and legislative aspects. Other modifications might revolve around the definition of the term ‘decentralization.’ 

Stablecoin Bill 

Several efforts have been made to pass a bill exclusively focused on stablecoins. However, these efforts have been futile in the past few years due to disagreements between state and federal regulatory authorities. 

Rep. Hill could reintroduce the stablecoin bill in the House, favoring state provisions. Despite Congress being expected to be dominated by pro-crypto advocates, Miller Whitehouse-Levine, CEO at DeFi Education Fund, projected that the bill has a 25% chance of passing next year and a 75% odds in 2026. 

Another bill expected to gain traction in the 119th Congress is a draft bill from Senator Cynthia Lummis, which proposes that the U.S. purchase 1 million Bitcoin over the next five years. 

Hammond expects this bill to be reintroduced next year. However, he does not think it will pass early because it lacks bipartisan support and a companion bill.