Today, the U.S. Congress initiates its 119th session, focusing on clarifying regulatory requirements for stablecoins. The government will explore establishing a framework to determine whether crypto firms will be overseen by the CFTC or the SEC.
Market Structure and Stablecoins
In the previous congressional session, two bills concerning stablecoins and the overall market structure emerged as key topics in the crypto realm. Representative French Hill, Chair of the Financial Services Committee, aims to advance both bills within the committee during the first 100 legislative days. Support has also been expressed by Senate Banking Committee Chair Tim Scott, House Agriculture Committee Chair Glenn Thompson, and Senate Agriculture Chair John Boozman for the passage of these bills. Typically, legislation is expected to emerge from committees before a vote takes place.
“We need to be faster.” -Marta Belcher
Most policy advocates anticipate that the stablecoin legislation will come first, as both Republican and Democratic members nearly reached a consensus last year on the matter. The primary point of contention is whether stablecoins should be backed one-to-one by the U.S. dollar.
Bitcoin Reserves
Legal experts have differing opinions on whether Congress needs to support the Treasury holding Bitcoin 
$99,518 as a national reserve currency.
“Trump wants to hold existing Bitcoin, but new purchases don’t seem to be a goal.” -Dennis Porter, Founder of Satoshi Action Fund.
The Bitcoin Reserve Act proposed last year by Senator Cynthia Lummis did not gain sufficient support. Nic Carter, General Partner at Castle Island Ventures, noted that there aren’t enough congressional members to pass such legislation. Perianne Boring, CEO of the Digital Chamber, suggested that while such a law could pass, it likely won’t happen within the first 100 days.
Political Calculations
Congress members face political pressure to enact laws before the 2026 midterm elections. Donations from the crypto industry influenced election outcomes last November, with the major Political Action Committee Fairshake raising millions for the midterms. Candidates cannot afford to take an anti-crypto stance while vying for competitive seats.
Dave Grimaldi, Chair of the Blockchain Association, indicated that the new Republican majority in the Senate seeks a smooth and expedited process alongside Democrats. However, changes to crypto legislation among Congress members may take over a year.
Implementing bills like the Financial Innovation and 21st Century Technologies Act (FIT21) and creating new rules will be time-consuming. Kristin Smith, CEO of the Blockchain Association, noted the rule-making process could take about 18 months.
In conclusion, changes in laws governing the crypto industry may extend over a year or several years. This timeline necessitates that the crypto markets adapt to the government’s pace of action.
