Crypto Legislation To Watch This Fall

UNITED STATES - JULY 17: Reps. Darren Soto, D-Fla., and Lisa Blunt Rochester, D-Del., attend a House Energy and Commerce Committee markup in Rayburn Building on Wednesday, July 17, 2019. (Photo By Tom Williams/CQ Roll Call)CQ-Roll Call, Inc via Getty ImagesThere are dozens of DeFi, Web3, and crypto-related bills that have been introduced across both Chambers of Congress. With the U.S. Senate and House now out for summer recess, all eyes are on the fall legislative calendar. Now that the stablecoin law has been enacted, there are other priority legislative proposals necessary as part of a comprehensive regulatory framework for blockchain and cryptocurrency.

Here are a few key crypto bills that will be deliberated on Capitol Hill after Labor Day when Congress is back in session.

Senate’s Companion Market Structure Bill

During Congressional Crypto Week, the full House passed the CLARITY Act on a bipartisan basis, with 78 Democrats voting in favor of the bill. The Senate’s companion legislation is still in draft mode. A few weeks ago, Banking Committee Chairman Tim Scott (SC), along with Senators Cynthia Lummis (WY), Bill Hagerty (TN), and Bernie Moreno (OH) released a discussion draft of the CLARITY Act. Next week is the deadline to respond to their request for public comment.

U.S. Senator Elizabeth Warren (MA), Ranking Member of the Committee, has also outlined a series of principles for market structure legislation.

This week, the White House released its crypto report in response to President Trump’s Executive Order on Strengthening American Leadership in Digital Financial Technology. In a fact sheet, they expressed support for the CLARITY Act.

“The Working Group determined that a fit-for-purpose market structure framework is essential to support growth and innovation in the digital assets industry, protect consumers, and keep the United States at the forefront of digital asset development. The Working Group recommends that Congress build on the massive bipartisan House of Representatives vote for CLARITY by enacting legislation.”

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A full House vote in June advanced the Deploying American Blockchains Act (H.R.1664), which was introduced by U.S. Representatives Kat Cammack (FL-03) and Darren Soto (FL-09).

A vote of the Senate companion with the same name, S.1492, has not been scheduled. Its co-sponsors include U.S. Senators Bernie Moreno (OH), Tim Sheehy (MT), and Lisa Blunt Rochester (DE).

Digital Assets Taxation Rules

The House Ways and Means Committee entered the crypto conversation with a hearing in July focused on taxation. Congressman Max Miller (OH-07) is leading policy deliberations. U.S. Senator Cynthia Lummis (WY) has also unveiled a new digital assets taxation package.

Protections For Non-Custodial Crypto Service Providers

This spring, U.S. Representatives Tom Emmer (MN-06) and Ritchie Torres (NY-15), who serve as Co-Chairs of the newly created Congressional Crypto Caucus, reintroduced the Blockchain Regulatory Certainty Act. The bill seeks to provide legal clarity and make clear that crypto developers and service providers that do not custody consumer funds are not money transmitters.