With the 2024 presidential election just around the corner, crypto has gained significant momentum as a key issue in the race for the White House, especially as candidates Vice President Kamala Harris and former President Donald Trump express their support for the digital asset industry.
However, legal experts argue that it is not the US president who will ultimately determine the future of digital assets in the United States, but Congress.
Focus on congressional action as the key
A recent one report by Dr. Tonya Evans, a professor at Penn State Dickinson Law, emphasizes 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.
If reported by Bitcoinist Harris is now emphasizing a pro-innovation narrative, suggesting that blockchain and digital assets are crucial components of her vision of an “opportunity economy” to strengthen middle-class families and small businesses.
On the other hand, Trump has made headlines by promising that transform the US as the “crypto capital of the planet” and vowed to remove SEC Chairman Gary Gensler from office on his first day in office.
Despite these high-profile promises, Evans believes the president’s ability to effect meaningful change in the crypto landscape is limited.
Evans notes that Congress, as the legislative arm of government, has the real power to shape Congress regulatory framework for digital assets. According to Article II of the Constitution, the president cannot unilaterally make laws or change regulations.
Instead, the president’s role is primarily to enforce the laws that Congress passes and oversee regulatory agencies such as the SEC and the Commodity Futures Trading Commission (CFTC).
Evans explains this further Congress must take decisive legislative action for sustainable progress in the world digital assets industry. Yet she has noted that many cryptocurrency observers and advocates often focus their attention on presidential races, neglecting Congress’ crucial role in regulation.
Bipartisan support for crypto is growing in Congress
Despite what has been seen as a lack of action from Congress in recent years, Evans is calling for remarkable progress in politics legislative landscape with the passage of the Financial Innovation and Technology for the 21st Century Act (FIT21), which rep. Tom Emmer has been recorded.
This law aims to provide much-needed clarity in the field of digital assets by distinguishing between an asset and the securities contract to which it may be linked, which would be crucial in possible future cases, such as one of the most infamous between blockchain payment companies. Ripple and the SEC.
Furthermore, support for crypto innovation is gaining ground in Congress. Figures like Rep. Maxine Waters (D-CA), once a critic of cryptocurrencies, now recognizes 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. At the same time, Senate Majority Leader Chuck Schumer (D-NY) expressed optimism about passing bipartisan legislation.
Furthermore, the StandWithCrypto.com database indicates that more than 50 Democratic lawmakers, including prominent figures like Rep. Ro Khanna (D-CA), now supportive of pro-crypto legislation.
To ensure that the US remains a leader in crypto adoption, Evans suggests that Congress should prioritize policies that promote innovation, rather than just tinkering with existing regulations.
Unlike the executive branch, the law professor said, Congress has the power to create tailor-made laws to meet the needs of the crypto industry. Evans concluded: “Now is the time to focus on where the real power lies – in Congress.
Featured image of DALL-E, chart from TradingView.com