Overview

The crypto sector’s recent efforts against an IRS regulation show renewed congressional support for cryptocurrency legislation.

Key Highlights

• The industry is gaining stronger allies in Congress, particularly among Democrats.
• A recent rule concerning decentralized finance (DeFi) reporting was largely rejected by bipartisan votes.
• Lobbyists and industry advocates suggest that negotiations on crucial legislations may become easier without compromising on core issues.

Insight from Kristin Smith, CEO of the Blockchain Association

“For years, we’ve been playing defense — trying to protect the industry from hostile regulators… Now we’re able to think a bit more expansively about what’s possible at the federal level.”

Translation: Tahun-tahun kami bermain bertahan — mencoba melindungi industri dari pengatur yang bermusuhan… Sekarang kami dapat berpikir sedikit lebih luas tentang apa yang mungkin terjadi di tingkat federal.

Legislative Background

The proposed legislation aimed at governing U.S. stablecoin issuers is nearing completion.

As discussions around this legislation progress, there appears to be a growing consensus in Congress that favors a clearer regulatory framework for crypto trading.

The Path Forward

The recent elections brought new allies into Congress aligned with pro-crypto policies, increasing the likelihood of favorable outcomes in future votes.

The organization’s backing, funded significantly by Coinbase, a16z, and Ripple Labs, showcases the strategic investment in developing a pro-crypto environment within legislative chambers.