The United States is on the verge of creating a cohesive policy framework for digital assets after nearly a decade of gridlock. Republicans, including influential congresspeople like Tom Emmer and Patrick McHenry, have emerged as the industry’s most important allies, but their pro-crypto bias may also be their downfall. In upcoming legislative opportunities, Republican policymakers must focus on putting “America first” and recognize that extending dollar dominance to Web3 is a strategic imperative.
Key points:
– GOP presidential hopefuls have adopted populist rhetoric on crypto, while progressive Senator Elizabeth Warren and her “anti-crypto army” depict crypto as an omnipresent threat.
– The Digital Assets Market Structure (DAMS) bill, penned in part by McHenry’s committee, marks Congress’s most credible proposed regulatory framework for crypto to date, but it falls short of bringing regulatory clarity to the industry.
– Republicans must bury the half-baked notion that crypto is antagonistic to the traditional financial system and recognize that extending dollar dominance to Web3 is a strategic imperative. They should also create clear SEC exemptions for digital assets so nascent U.S. protocols can get off the ground and embrace blockchain’s potential to enhance the United States’ regulated financial sector.