Crypto regulation needs congressional action

Former Congressman Wiley Nickel emphasises that lasting changes in cryptocurrency regulation must be enacted through Congress rather than relying on executive orders.

Nickel stressed the importance of bipartisan collaboration to achieve comprehensive crypto regulations, noting that executive orders can be easily repealed by future administrations.

"If you want lasting change in Washington, you must move legislation through Congress. Otherwise, if you're talking about executive orders, it will just go back and forth," Nickel explained.

This approach is crucial to avoid the regulatory uncertainty seen under previous administrations, such as the SEC's enforcement actions under Gary Gensler.

Both chambers of Congress are actively working on crypto-related legislation.

Rep. Tom Emmer has reintroduced a bill to ban central bank digital currencies (CBDCs) in the U.S., while Senator Cynthia Lummis has proposed the Bitcoin Act, which would allow the U.S. to purchase over 1 million Bitcoin.

Additionally, Rep. Byron Donalds plans to codify President Trump's Bitcoin strategic reserve into law to prevent future reversals.

The House of Representatives recently repealed the IRS broker rule affecting decentralised finance platforms, reflecting a broader shift towards clearer regulatory frameworks for digital assets.

Democrat Rep. Ro Khanna believes that Congress can pass comprehensive crypto regulations, including stablecoin and market structure bills, by the end of 2025.

These legislative efforts aim to provide a stable and predictable regulatory environment for the cryptocurrency sector, which is essential for its growth and adoption.

As Nickel noted, lasting regulatory change requires legislative action to ensure that regulations are not subject to the whims of changing administrations.