Key Takeaways

• Schumer advocates for a bipartisan approach to US crypto legislation.
• The Senate aims to pass significant crypto regulation by year’s end.

Senate Majority Leader Chuck Schumer has set an ambitious goal to pass bipartisan cryptocurrency legislation by the end of the year, signaling a potential shift in the Democratic party’s stance on digital assets.Speaking at a virtual town hall hosted by Crypto4Harris, a grassroots organization advocating for Vice President Kamala Harris’ presidential campaign, Schumer emphasized the need for “common sense and sound regulation” in the crypto industry.The New York Democrat stated: “Congress has a responsibility to provide common sense and sound regulation on crypto, and we need your support to make sure that any proposal is bipartisan.”Schumer’s comments come as the crypto industry seeks political allies ahead of the 2024 presidential election. While former President Donald Trump has recently positioned himself as pro-crypto, the Biden administration’s approach has been marked by regulatory challenges and legal battles with industry players.The Senate Majority Leader expressed optimism about passing legislation despite the looming election, saying:

“My goal is to get something passed out of the Senate and into law by the end of the year, and I believe we can make that happen.”

He referenced the Financial Innovation and Technology for the 21st Century Act (FIT21), which recently passed the House, and mentioned an upcoming bill from the Senate Agriculture Committee. On the same day that the act was passed, the White House published a statement opposing it.Several lawmakers and industry figures attended the Crypto4Harris event, including Senator Kirsten Gillibrand (D-N.Y.) and billionaire Mark Cuban. While Harris herself was not present and has not made any public statements on crypto policy, her supporters suggested she would take a more favorable approach to the industry than the current administration.The push for crypto legislation faces several hurdles, including a divided Congress and the approaching general election. However, Schumer insisted that progress is possible, citing his track record of passing bipartisan bills. “Sadly, there are a lot of members in Congress nowadays who built their political brands around creating spectacle and sensationalism instead of putting in the hard work of legislation,” he said. “Nonetheless, passing legislation this year is absolutely possible, even in these divided times,” Schumer adds.

The crypto industry’s political action committees, such as Fairshake, have been actively supporting both Democratic and Republican candidates in congressional races. However, they have yet to engage in the presidential campaign directly.The industry continues to seek clarity and support from potential presidential candidates, and Harris’ campaign appears to be making tentative moves to engage with crypto advocates. A source close to her campaign team indicated that Harris is open to learning more about the technology and its implications.Schumer emphasized the importance of balancing innovation with consumer protection and national security concerns.

“We cannot afford to continue to sit on the sidelines because then we risk crypto going overseas to lowest common denominator countries where there will be no regulation at all,” he warned.

With multiple crypto-related bills in various stages of development in both the House and Senate, the coming months will be crucial in determining the future regulatory landscape for digital assets in the United States.