US Congress to Prioritize Crypto Regulation Next Year

US Congressman French Hill is set to prioritize crypto regulation, particularly the FIT21 Act and the Stable Bill, by next year.

Crypto enthusiasts are optimistic about the potential of this nascent asset under the next US administration. Regulators will have another opportunity to pass regulation for the crypto industry in 2025.

Hill to Prioritize Crypto Regulation Next Year

Interestingly, Arkansas Rep. French Hill revealed his plans to prioritize crypto legislation, specifically the stablecoin bill and the FIT21 Act, next year .

For context, Hill will lead the Congressional Financial Services Committee, spearheading the panel’s crypto regulation efforts. He worked on several bills, including the FIT21 law and a proposed regulation for stablecoins.

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

Chances of pro-crypto bill passing skyrocket

However, this position is expected to change in the next Congress, which is dominated by several cryptocurrency supporters. Additionally, President-elect Donald Trump’s support for crypto is another factor that increases the chances of a pro-crypto bill passing.

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

FIT21 law

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

As previously reported, the House passed the bill earlier this year with bipartisan support. However, Senate approval remains uncertain as changes at the top of the SEC and CFTC are expected in the coming year, according to Hammond.

Hammond expects changes to be made to the regulatory and legislative aspects of the bill. Other changes could revolve around the definition of the term “decentralization”.

Stablecoin bill

There have been several efforts to pass a bill focused exclusively on stablecoins. However, these efforts have been unsuccessful in recent years due to disagreements between state and federal regulators.

Rep. Hill could reintroduce the stablecoin bill in the House, favoring state provisions. Even though Congress is expected to be dominated by cryptocurrency advocates, Miller Whitehouse-Levine, CEO of the DeFi Education Fund, predicts the bill has a 25% chance of passing next year and a 75% chance of chances in 2026.

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

Hammond expects this bill to be reintroduced next year. However, he doesn’t think the bill will pass any sooner because it lacks bipartisan support and a companion bill.