Senator Ron Wyden Praises House’s Crypto Bill, Cautions on Rapid Progress

U.S. Senator Ron Wyden (D-Ore.), a Senate Democrat who has shown support for cryptocurrency issues, expressed doubt that a legislative solution for the industry would advance quickly, despite recent progress in the House of Representatives.

At the Consensus 2024 event, senator Ron Wyden commended the House for approving the Financial Innovation and Technology for the 21st Century Act (FIT21), driven by Rep. Patrick McHenry (R-N.C.), which gained support from a third of the House Democrats. The bill, aimed at establishing a regulatory framework for digital assets, is now under Senate consideration.

Wyden, Chairman of the Senate Finance Committee, noted the lateness of the current session as a potential obstacle for the bill’s progress. However, he agreed with Chairman McHenry’s effort to create a regulatory framework and focus on combating fraud in the crypto industry. “It’s getting late in this session, so it’s unclear how far that bill will move,” Wyden said. “But I think Chairman McHenry is right to establish a kind of regulatory framework and put a sharper focus on fighting fraud and rip-off artists.”

Wyden also discussed his role in the Senate’s decision to challenge the U.S. Securities and Exchange Commission’s (SEC) controversial crypto accounting standard, Staff Accounting Bulletin No. 121 (SAB 121). He and 11 other Senate Democrats joined Republicans in opposing the policy, which they argue unfairly singles out crypto for a different custody standard than other financial sectors. Despite House and Senate approval to overturn the policy, President Joe Biden has threatened a veto. “It basically sets up a different standard for crypto than everybody else has in the financial sector with respect to custody,” Wyden said. “A group of us said, ‘Let’s just hold on here and take the time to make sense and not just establish a whole separate unique barrier to storing customers’ crypto.’”

A member of the Congressional Internet Caucus, Wyden supports stablecoins and blockchain technology innovations, such as portable medical records. He acknowledged that Congress often struggles with new technology but sees crypto as a significant issue for the upcoming congressional elections. “There’s no question that there’s growing interest here,” he said. “It’s being driven by a lot of young, creative people.”

Wyden’s remarks highlight both the progress and challenges in establishing a comprehensive regulatory framework for the cryptocurrency industry, emphasizing the need for careful consideration and balanced policies.

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