U.S. crypto lobbyists were thrilled to see Congress supporting them in recent votes. The industry, once considered a pariah, now has strong allies in the White House and U.S. financial agencies. The recent votes in both the Senate and House of Representatives on an IRS rule show that lawmakers are deeply supportive of the crypto sector. Many Democrats joined with Republicans on these votes, suggesting that they may not have to compromise much on other important legislation.
Former President Joe Biden’s IRS had finalized a rule targeting decentralized finance (DeFi) projects as brokers, requiring them to report taxes for users. However, both the Senate and House voted to repeal this rule by large margins, with significant support from Democrats. This bipartisan support indicates a positive outlook for future crypto-related topics in Congress.
With a significant number of Democrats on board, the industry can now look towards passing legislation regarding U.S. stablecoin issuers. This could be one of the few issues that find common ground in a period of extreme partisanship.
The ultimate goal for the industry is to have clear regulations for U.S. crypto trading and transactions. Passing such legislation would prevent legal confusion and reliance on court decisions. Lawmakers are building on previous efforts like the FIT21 Act, with hopes for a smoother path this time around.
The industry gained new allies in Congress after the 2024 elections, with the Fairshake PAC playing a crucial role in supporting pro-crypto lawmakers. Major industry players like Coinbase, a16z, and Ripple Labs are backing Fairshake to continue influencing legislative decisions. The recent bipartisan cooperation in Congress shows the potential impact of supporting the growth and regulation of the industry.
Prior to the recent elections, there was already growing support for crypto-related policies in Congress. The rise in voter awareness of cryptocurrencies and the push for regulation have contributed to the most pro-crypto Congress to date.
