After nearly a decade of stagnation, the United States may finally be on the verge of creating a cohesive policy framework for digital assets. Lawmakers in Congress are considering various proposed bills governing aspects such as stablecoins, securities rules, and sanctions. The 2024 presidential race might be the first to feature crypto as a focal point, with both sides of the aisle playing important roles. While Republicans such as Tom Emmer and Patrick McHenry have emerged as the industry’s most crucial allies, the GOP’s pro-crypto bias could also be its downfall.
From uncritical crypto “maximalism” to fears of Orwellian surveillance, Web3’s industry jargon has infiltrated the party’s campaign rhetoric and even its policy proposals. In upcoming legislative opportunities, such as the House’s draft crypto regulatory bill, Republican policymakers must focus on putting “America first.”
Candidates like Florida Governor Ron DeSantis emphasize the need to protect Americans from “a federally controlled central bank digital currency surveillance state,” while progressive politicians like Senator Elizabeth Warren and her “anti-crypto army” paint crypto as a broad and menacing threat.
What is missing in this partisan atmosphere is an informed appreciation of blockchain’s potential and its significance for America’s long-term economic interests. The influence of the crypto industry’s rhetoric is evident even among crypto-savvy GOP lawmakers like McHenry, who recently spearheaded the House Subcommittee on Digital Assets.
For instance, the Digital Assets Market Structure (DAMS) bill, drafted in part by McHenry’s committee, offers Congress’s most credible regulatory framework for crypto to date. However, the bill focuses more on regulating Web3 as the industry imagines it, rather than how it operates today. DAMS conceives of crypto assets primarily as “digital commodities” to be managed by the Commodities Futures Trading Commission, but the bill’s requirements for “decentralization” only apply with certainty to Bitcoin and Ether.
The GOP has an opportunity to define America’s crypto policy. Lawmakers must focus on Web3 as it exists today to harness its benefits for the future. This includes dispelling the notion that crypto is antagonistic to the traditional financial system and overcoming the aversion to the SEC.
Policymakers should create clear SEC exemptions for digital assets so nascent U.S. protocols can flourish. In the long run, officials should recognize blockchain’s potential to enhance America’s regulated financial sector and maintain dollar dominance in Web3.
Republicans must lead the charge by championing bills like the House’s latest stablecoin draft and backing crypto-friendly KYC and AML rules. Crypto shouldn’t be viewed as a scam against the dollar but as a powerful strategic asset that puts America first.
Source: Cointelegraph
