Democratic Party Leaders in the House of Representatives Say ‘No Whip’

Recent reports revealed that Democratic Party leaders have chosen not to ease the upcoming vote on two pro-crypto bills. This seemingly positive development comes along with the recent 180-degree turn that the Biden administration appears to be making on cryptocurrencies.

Representatives of the House of Representatives do not have to vote no

According to an email shared by Politico, Democratic Party leaders have not urged its members to vote against two pro-crypto bills expected to soon be brought to the House of Representatives.

The Whip Question showed that Democratic leaders expect bills HR 4763 and HR 5403 to come to the floor this week. As a result, they have presented their problems with the bills, despite not forcing House Democrats to vote against them.

Bill HR 476, or Financial Innovation and Technology for the 21st Century (FIT21) Act, would provided a new regulatory framework for the industry. If FIT21 is passed, the Commodity Futures Trading Commission (CFTC) would become the primary regulator of cryptocurrencies and clarify whether a digital asset is a security or a commodity.

According to the email, Democratic leaders believe the bill contains language that “undermines decades of legal precedent and case law, creating uncertainty in our traditional securities market.”

FIT21 would also reportedly provide a “safe harbor” for entities that would “protect them from the SEC’s rules and regulations until the SEC and the CFTC finalize their rules,” making investor protections against fraud and market manipulation effective “impaired”.

Regarding the CBDC Anti-Surveillance State Act, or bill HR 5403, the Democratic Party believes it would “have major negative consequences.” The impact includes “impeding the primacy of the U.S. dollar” and undermining “the Fed’s ability to conduct monetary policy.”

As a result, ranking members Maxine Waters and David Scott strongly opposed the legislation, specifically releasing a “Dear Colleague” letter on FIT21 and urging Democratic House representatives to vote “no.”

It is worth noting that the American Bankers Association (ABA) urged House representatives to support the bill HR 5403. published a letter in support of the bill.

The association believes that a central bank digital currency (CBDC) is unnecessary and “would impose unacceptable risks and costs on the financial system.” Furthermore, ABA argues that this would fundamentally change the relationship between citizens and the Federal Reserve, undermining “the important role that banks play in financial intermediation.”

Political journalist Eleanor Mueller revealed that the floor debate and passage of the bills will reportedly take place on Wednesday, May 22.

Isn’t the US government shifting on crypto regulations?

The US government’s crackdown on cryptocurrencies has created an unclear and uncertain landscape for the crypto industry. Moreover, the strict and sometimes “overreaching” approximation against the sector has been strongly criticized by key community figures and politicians.

Government scrutiny is intensifying as the November elections approach. This has seemingly prompted the Biden administration to move to a more strategic approach to crypto.

If reported by Bitcoinist, experts believe this change could be a response to Trump’s endorsement of cryptocurrencies. The Republican candidate and former president has received positive responses from the crypto community for supporting digital assets.

Furthermore, pressure from the community and key political figures, who have called for clearer regulations and a more welcoming landscape, has put the US government “on the defensive,” as Riot Platform Public Policy Director Sam Lyman pointed out.

Ultimately, the industry’s efforts must continue despite recent victories. CoinRoutes Chairman Dave Weisberger said“It is NOT a time to be complacent.”

crypto, TOTAL

Total crypto market capitalization is at $2.55 trillion in the weekly chart. Source: TOTAL on TradingView

Featured image from Unsplash.com, chart from TradingView.com

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