McHenry Suggests Senate Shift If Democrats Rally Behind Crypto Bill

The upcoming vote on U.S. legislation aimed at regulating the cryptocurrency sector is poised to significantly impact the U.S. Senate’s stance, according to Rep. Patrick McHenry (R-N.C.), chair of the House Financial Services Committee and a prominent crypto legislation advocate. McHenry, who is nearing retirement, emphasized the importance of garnering Democratic support for the bill.

He stressed that observing the number of Democrats backing the legislation will be crucial.

As his congressional tenure nears its end, McHenry has prioritized digital assets regulatory efforts. Under his leadership, the House Financial Services Committee has recently achieved several milestones in cryptocurrency legislation, including advancing bills and challenging the Securities and Exchange Commission (SEC) on crypto accounting policies.

The focal point of these legislative efforts is the Financial Innovation and Technology for the 21st Century Act (FIT21), which is scheduled for a final vote in the House of Representatives soon. This comprehensive crypto bill, if passed with bipartisan support, would mark significant progress for the cryptocurrency industry in Washington.

“We will have this bill on the House floor next week for a vote,” McHenry announced at the DC Blockchain Summit. “The result of this vote will determine its reception in the Senate and whether it can become law.”

Nevertheless, the bill’s prospects in the Senate remain uncertain. McHenry hinted that anything could happen during the lame-duck session of Congress, the period between the November elections and the session’s conclusion, where unrelated bills often advance together.

Rep. French Hill (R-Ark.), leader of a crypto subcommittee and a potential successor to McHenry, expressed optimism about the FIT21 House vote. He cited the recent instance where 21 Democrats voted to overturn the SEC’s contentious crypto accounting rule, Staff Accounting Bulletin No. 121 (SAB 121), despite a veto threat from President Joe Biden.

“I’m optimistic, and I anticipate robust Democratic support,” Hill shared regarding FIT21. “This legislation is forward-looking.”

Hill also noted that the bill addresses an executive order from President Biden’s earlier term, which called for comprehensive crypto legislation.

McHenry concurred, highlighting the significance of Democratic opposition to the White House and SEC on the accounting provision. Notably, Senate Democrat Kirsten Gillibrand from New York has indicated she will support overturning the bulletin when it comes to a vote.