Bipartisan Push for U.S. Crypto Regulation Gains Momentum

Bipartisan support is crucial for the future of U.S. crypto legislation, as industry leaders and policymakers alike recognize the need for a clear regulatory framework to drive innovation and protect consumers. In recent weeks, the U.S. House Financial Services Subcommittee on Digital Assets held a hearing, highlighting the importance of bipartisan consensus in shaping the country's digital assets policy.

Jonathan Jachym, Kraken's Global Head of Policy and Government Relations, testified before the subcommittee, emphasizing the magnitude of the opportunity to finalize U.S. market structure legislation and create a clear regulatory framework for cryptocurrencies. This is not merely about policy reform; it's about securing our markets and driving forward innovation that can enhance financial services.

After years of legislative debate, the 119th Congress has the chance to galvanize the necessary nonpartisan consensus to advance U.S. digital assets policy. The journey through industry engagement, education, hearings, legislative drafting, and debate has shown significant bipartisan cooperation. Senators Lummis and Gillibrand laid a strong foundation for meaningful bipartisan policy development in Congress with the introduction of legislation in early 2022, while last year the House passed FIT 21.

There is strong agreement in Congress for enacting a regulatory framework for centralized intermediaries – one that protects consumers while enabling blockchain-based innovation. The current patchwork of state-level regulations and the prior Administration's regulation by enforcement has stifled both innovation and consumer protection. A cohesive market structure framework for centralized intermediaries will pave the way for clearer, more consistent rules.

The industry deserves a system that not only secures consumer interests but also recognizes the unique dynamics of digital assets. Bipartisan efforts must culminate in legislation that establishes a durable framework, finally eliminating the regulatory ambiguity that has long hindered progress in the crypto space.

Globally, nations are rapidly adapting to the digital revolution with balanced, forward-thinking regulations. The EU, UK, Canada, and other major and emerging markets are all proof that effective regulation is achievable. With the Administration, independent federal agencies, and Congress working together, there is a clear and critical opportunity for the U.S. to accelerate and finalize this bipartisan legislation this year. A unified regulatory framework will not only harmonize U.S. rules with international standards but also empower U.S. regulators to engage more effectively on the global stage.

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