Schumer’s Crypto Bill: Will It Pass in 2024?
Senate Majority Leader Chuck Schumer has expressed optimism about passing crypto legislation by the end of 2024, but how realistic is that goal?
The Journey So Far
Earlier this month, Schumer (D-N.Y.) shared his ambition at a “Crypto4Harris” virtual event, stating he hoped to navigate crypto legislation through Congress and have it signed into law by President Biden before 2024 concludes. This is a bold aim, but achieving it is easier said than done.
Why It Matters
The crypto industry has long sought clear, issue-specific legislation in the U.S. This legislation could provide companies with the legal framework they need to develop and issue tokens, manage blockchain networks, and operate without fear of unexpected regulatory crackdowns. The most significant effort so far is the Financial Innovation and Technology for the 21st Century Act (FIT21), a House bill backed by Financial Services Committee Chair Patrick McHenry (R-N.C.). However, with limited legislative days left this year, the chances of passing crypto legislation through the Senate seem slim. Here’s what could happen and the potential challenges ahead.
Breaking It Down
At the recent SALT Wyoming Symposium, Senators Cynthia Lummis (R-Wyo.) and Tim Scott (R-S.C.) discussed a possible pathway for crypto legislation. They suggested that the Senate Agriculture Committee, which focuses on commodities law, could be the key. Sen. Debbie Stabenow (D-Mich.), who chairs this committee, has been working on related legislation, though it hasn’t been introduced yet.
If a bill emerges from this committee, it could evolve into a “Christmas Tree bill,” where additional amendments and provisions are attached. These might include the SAFER Banking Bill or stablecoin regulations. However, the chances of passing any crypto-related legislation this year are slim due to the limited number of working days left in the legislative calendar.
Lummis highlighted that much of the remaining time will likely be spent on essential bills, such as the National Defense Authorization Act and budget legislation. There is a possibility that crypto provisions could be incorporated into these must-pass bills, as one legislative staffer suggested after Schumer’s remarks. Scott echoed this sentiment, noting that the motivation and incentives are there to accomplish a lot in a short amount of time.
The Bigger Issue
The main challenge is whether any crypto provisions can garner enough support to advance in the Senate. This includes introducing a bill, passing it out of committee, and ultimately getting it through the Senate, either as a standalone bill, part of a larger financial services bill, or within must-pass legislation.
While there is some bipartisan support for crypto in Congress, it’s uncertain whether the issue will take priority over other pressing matters. For example, the fiscal year ends soon, and lawmakers are expected to focus on that first. However, there is cautious optimism that if not this year, legislation could move forward next year. The progress of FIT21 in the House and the growing attention crypto issues are receiving from lawmakers are positive signs.
What’s Next?
The final weeks of August are quiet, but hearings will resume next month. As the legislative calendar unfolds, the crypto industry and its supporters will be watching closely to see if Schumer’s ambitious goal can be met.
