Cryptocurrency transcends political divisions and instead revolves around the choice between supporting the government or individual autonomy, according to United States Congressman Tom Emmer. While both political parties are embracing crypto, one appears to be moving more swiftly than the other. Emmer highlighted Senate majority leader Chuck Schumer’s endorsement, along with that of 70 other Democrats, of the resolution to overturn the Securities and Exchange Commission’s (SEC) controversial SAB 121 crypto rule as a sign that the opposition to crypto, led by Senator Elizabeth Warren, SEC Chair Gary Gensler, and the White House, may be losing its influence. Emmer expressed his dissatisfaction with Warren’s significant role in decision-making at the White House.
Emmer expressed hope that Schumer would introduce the Financial Innovation and Technology for the 21st Century Act (FIT21), a crypto-friendly bill, in the Senate. The bill was already passed in the House of Representatives on May 22. However, there is a possibility that the Senate may make amendments to the bill and send it back to the House. Alternatively, it is more likely to be passed during the lame duck session, which occurs after the next elections but before newly elected legislators take office.
Emmer was not surprised by the SEC’s approval of spot Ether exchange-traded funds, given the agency’s recent reversals. He suggested that Gensler may be on his way out and advised caution when dealing with someone in a vulnerable position.
In terms of the future of digital assets, Emmer believes that the next crucial step would be the development of a stablecoin that is solid and stable enough to be traded globally. If that were to happen, Federal Reserve Chair Jerome Powell could face a similar fate as Gensler, according to Emmer. Emmer also criticized the Federal Reserve for its confusion regarding the development of a central bank digital currency (CBDC), citing President Joe Biden’s Executive Order on Ensuring Responsible Development of Digital Assets as evidence. Despite Powell’s repeated statements that the Fed would not issue a CBDC without Congressional authorization, the passage of the CBDC Anti-Surveillance State Act in the House on May 23 demonstrated the political significance of the issue. Emmer likened a CBDC to a surveillance tool similar to those used by the Chinese Communist Party but did not completely dismiss the idea of digital cash that maintains privacy and resembles traditional cash in its usability.
In conclusion, Emmer believes that both the Republican and Democratic parties have their flaws when it comes to their stance on crypto, with GOP crypto maximalists being almost as problematic as the Democrats’ anti-crypto army.