With the 2024 presidential election approaching, crypto has gained significant momentum as a key issue in the race to the White House, especially with candidates like Vice President Kamala Harris and former President Donald Trump voicing support for the digital asset industry.
However, legal experts assert that it is not the US President who will decide the future of digital assets in the United States, but Congress.
Focus on Congressional Action as Key
The latest report by Dr. Tonya Evans, a professor at Penn State Dickinson Law, highlights that Vice President Harris has moved away from President Biden’s opposition to cryptocurrencies, which is largely driven by the Securities and Exchange Commission (SEC) and other regulators.
As report by Bitcoinist, Harris now emphasizes a pro-innovation narrative, suggesting that blockchain and digital assets are key components of his “Economic Opportunity” vision to empower middle-class families and small businesses.
Trump, on the other hand, has made headlines for promising convert the US has entered the “crypto capital of the planet” and promises to remove SEC Chairman Gary Gensler from his position on his first day in office.
Despite these attractive promises, Evans believes the President’s ability to make meaningful change in the crypto landscape is limited.
Evans notes that Congress, as the legislative branch of government, exercises the real power to shape regulatory framework holding digital goods. Under Article II of the Constitution, the President cannot make laws or change regulations on his own.
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 goes on to explain that Congress must take decisive legislative action for continued progress in the digital goods industry. However, he noted that many observers and cryptocurrency advocates usually focus their attention on presidential races, ignoring the important role of Congress in legislation.
Bipartisan Support for Crypto Grows in Congress
Despite what has been seen as a lack of congressional action in recent years, Evans is championing tangible progress legal status with the passage of the Financial Innovation and Technology for the 21st Century Act (FIT21), which includes the Securities Clarity Act of Rep. Tom Emmer.
This law aims to provide the much-needed clarity in the area of ​​digital assets by distinguishing between the asset and the securities contract to which it may be linked, which can be key in possible future situations such as the well-known one among the blockchain payment company. Ripple and the SEC.
In addition, support for crypto innovation is gaining momentum in Congress. Figures like Rep. Maxine Waters (D-CA), once a critic of cryptocurrencies, now recognizes the importance of communicating with the emerging technology.
At a recent town hall event, pro-crypto lawmakers urged Harris to take a more favorable stance on the digital asset. At the same time, Senate Majority Leader Chuck Schumer (D-NY) expressed hope for the passage of bipartisan legislation.
In addition, the StandWithCrypto.com website indicates that more than 50 Democratic lawmakers, including prominent figures such as 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 must prioritize policies that encourage innovation rather than merely discussing existing laws.
Unlike the executive branch, the law professor said, Congress has the power to create complementary laws to meet the needs of the crypto industry. Evans concluded, “Now is the time to focus where the real power lies – in Congress.
Featured image from DALL-E, chart from TradingView.com