Tuesday Newsletter

Explore the latest trends, gain valuable insights, and stay informed in the dynamic cryptocurrency ecosystem.

21 May 2024

In a revealing turn of events, it seems that Democratic Party leaders are not compelling members of the United States House of Representatives to vote against two forthcoming pro-crypto bills. A leaked email shared by Politico sheds light on this nuanced stance, showing that while Democratic leaders strongly oppose two Republican-led crypto bills, they are not enforcing a “no” vote mandate.

The email, dated May 20 and circulated among house members, highlights the Democratic Party’s stance on the Financial Innovation and Technology for the 21st Century (FIT21) Act and the CBDC Anti-Surveillance State Act — H.R. 4763 and H.R. 5403, respectively.

While the party refrains from urging a negative vote, certain representatives, notably Maxine Waters and David Scott, are vocal in their opposition to FIT21, with Waters also expressing disapproval of the CBDC act.

FIT21, among its provisions, aims to clarify the classification of cryptocurrencies as commodities or securities, potentially ceding regulatory oversight to the U.S. Commodity Futures Trading Commission (CFTC). Backed by significant support from the crypto industry and lobbyists, FIT21 has garnered attention for its potential positive impact.

Conversely, the CBDC Anti-Surveillance State Act seeks to block the Federal Reserve from issuing a central bank digital currency, citing concerns over privacy and the U.S. dollar’s global standing. Democratic leaders argue that such a move could undermine the Fed’s monetary policy efforts, particularly in managing inflation.

While Democratic Party leaders acknowledge the potential benefits of these bills to the crypto industry, they express reservations regarding certain provisions. Concerns include the erosion of investor protections and the risk of market manipulation, as well as broader implications for monetary policy and the dollar’s supremacy.

As the debate unfolds, FIT21 is slated for floor discussion and potential passage on Wednesday, May 22, according to reports. The nuanced stance of Democratic leaders reflects a complex landscape where the interests of the crypto industry intersect with broader economic and regulatory considerations. Stay tuned for further developments on this evolving legislative front.