U.S. Congress to Prioritize Crypto Legislation in 2025, Focusing on Stablecoins and FIT21 Act
With the pro-crypto government under Trump taking power, the U.S. Congress is expected to prioritize crypto legislation in 2025, focusing on key issues such as stablecoins and the FIT21 bill. It is worth noting that by 2025, the United States may pass multiple cryptocurrency bills. Washington is expected to have the most pro-cryptocurrency Congress.
In the new year, the House Financial Services Committee, headed by Arkansas Rep. French Hill, will likely spearhead crypto legislation. Hill currently chairs the committee’s digital assets group and has been involved in a number of cryptocurrency-related bills, including one focused on regulating stablecoins and the FIT21 Market Structure Bill.
“If FIT21 and stablecoin legislation fail to pass during the lame duck period, these two bills will be my top priorities in the 119th Congress,” Hill noted.
FIT 21 Act
The bill aims to establish a clearer regulatory framework for digital assets, defining whether they are securities or commodities. The bill has passed the House of Representatives and would give the U.S. Commodity Futures Trading Commission more power to regulate the cryptocurrency market, especially digital commodities such as Bitcoin. However, as recent discussions have highlighted, despite significant bipartisan interest, the proposal’s passage in the Senate is uncertain.
It’s unclear where FIT21 will go next, as the SEC and CFTC will look different in the coming year as Trump picks Paul Atkins to lead the SEC, who has shown a strong interest in cryptocurrencies Friendly attitude. There may also be room for some changes in how FIT21 defines decentralization.
Stablecoin legislation
Discussions surrounding stablecoin regulation are ongoing, with bills such as the Stablecoin Payments Clarity Act under consideration. The focus is on providing regulatory clarity and consumer protections for stablecoins, which may be incorporated into wider financial legislation or passed as a stand-alone bill. This will involve setting standards for issuers and ensuring stablecoins are properly supported.
Digital Asset Market Infrastructure Act
The legislation will address aspects such as custody and the integration of digital assets into traditional financial systems. Rumors suggest the bill could be passed in early 2025, suggesting a push for infrastructure to support cryptocurrencies in financial services.
General regulatory clarity
There’s been a push for regulatory clarity in the cryptocurrency space, with lawmakers like Rep. French Hill prioritizing digital asset legislation in the new Congress. This could lead to various bills aimed at addressing different aspects of cryptocurrencies, from taxation to AML/KYC requirements, thus shaping the regulatory environment for cryptocurrencies.
Bitcoin strategic reserve
The idea of creating a strategic reserve of Bitcoin is gaining traction at both the federal and state levels. Trump has promised to build such a reserve, while Senator Cynthia Lummis has drafted a bill that would require the U.S. Treasury Department to purchase 1 million Bitcoins over five years.
However, Loomis’ bill could face challenges because it lacks bipartisan support and support in the Senate. Another factor that could influence cryptocurrency legislation is Warren’s new position as the senior Democratic ranking member of the influential Senate Banking Committee.
Competition for legislative time will be fierce as Congress faces multiple competing priorities in the year ahead, including major tax and border-related legislation. This could affect the prospects of all cryptocurrency-related bills, including FIT21 and others.
The political climate, a bipartisan approach in support of cryptocurrencies, and potential support from the incoming administration suggest that significant legislative action targeting cryptocurrencies may occur by 2025, although the exact scope and nature of these bills will depend on political negotiations, regulatory agencies and many other factors. Engagement and public sentiment.
