As the 2024 presidential election approaches, crypto has gained considerable momentum as a key issue in the race for the White House, particularly with candidates running for Vice President Kamala Harris and former President Donald Trump expressing support for the digital assets sector.
However, legal experts say it is not the US president who will ultimately determine the future of digital assets in the US, but Congress.
Focus on Congressional Action as Key
A recent report by Dr. Tonya Evans, professor at Penn State Dickinson Law, points out that Vice President Harris has moved away from President Biden’s previously antagonistic approach to cryptocurrencies, largely driven by the Securities and Exchange Commission (SEC) and other regulators.
As reported per Bitcoinist, Harris is now emphasizing a pro-innovation narrative, suggesting that blockchain and digital assets are crucial parts of his vision of an “opportunity economy” to empower middle-class families and small businesses.
On the other hand, Trump made headlines by promising to transform the United States in the “crypto capital of the world” and pledging to remove SEC Chairman Gary Gensler from his position on his first day in office.
Despite these eye-catching promises, Evans believes the president’s ability to make meaningful changes in the crypto landscape is limited.
Evans notes that Congress, as the legislative branch of government, exercises the real power to shape the regulatory framework governing digital assets. Under Article II of the Constitution, the president cannot unilaterally create laws or amend regulations.
Instead, the president’s role is primarily to enforce laws passed by Congress and oversee regulatory agencies such as the SEC and the Commodity Futures Trading Commission (CFTC).
Evans further explains that Congress must take decisive legislative action for lasting progress in the digital assets sector. Yet she noted that many cryptocurrency observers and advocates often focus their attention on presidential elections, neglecting Congress’s vital role in regulation.
Bipartisan support for crypto increases in Congress
Despite what has been seen as a lack of congressional action in recent years, Evans argues for a notable advance in the field legislative landscape with the passage of the Financial Innovation and Technology for the 21st Century Act (FIT21), which incorporates Rep. Tom Emmer’s Securities Clarity Act.
This law aims to provide much-needed clarity in the area of digital assets by distinguishing between an asset and the securities contract to which it may be linked, which would be essential in possible future cases such as one of the most notorious between a blockchain payment company. Ripple and the SEC.
Additionally, support for crypto innovation is gaining traction in Congress. Figures like Rep. Maxine Waters (D-CA), once a critic of cryptocurrencies, now recognize the importance of engaging with emerging technologies.
At a recent town hall event, pro-crypto lawmakers urged Harris to take a more favorable stance toward digital assets. Meanwhile, Senate Majority Leader Chuck Schumer (D-NY) expressed optimism that bipartisan legislation would pass.
Additionally, the StandWithCrypto.com database indicates that more than 50 Democratic lawmakers, including prominent figures like Rep. Ro Khanna (D-CA), are now favorable pro-crypto legislation.
To ensure the United States remains a leader in crypto adoption, Evans suggests that Congress must prioritize policies that promote innovation rather than simply tinkering with existing regulations.
Unlike the executive branch, the law professor said, Congress has the power to create laws tailored to meet the needs of the crypto industry. Evans concluded: “Now is the time to focus where the real power lies: Congress.
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