Republicans Secure House Majority, Paving Way for Crypto-Friendly Leadership in America

Key takeaways

• Republicans secured a majority in the U.S. House of Representatives, which could lead to a shift in focus toward cryptocurrency.
• With Rep. Patrick McHenry retiring in 2025, Republicans are set to take control of the House Financial Services Committee.
• Maxine Waters, the top Democrat on the committee, has been a driving force behind stablecoin regulation.

Republicans Retain House Majority, Paving the Way for Crypto-Focused Legislation

Republicans have managed to maintain control of the U.S. House of Representatives. This victory could lead to a shift in focus toward digital assets. With a Republican majority, lawmakers who support cryptocurrency may push for new crypto-related bills.

According to the Associated Press, the Republicans secured 218 seats, while Democrats held onto 208. Therefore, Republicans are now in a position to take charge of the House Financial Services Committee.

This key committee oversees important agencies, including the U.S. Securities and Exchange Commission, the Federal Reserve, and other federal agencies.

Rep. Patrick McHenry, a Republican from North Carolina, is the chair. However, he will retire in January 2025, creating an opening for a new leader to step in.

McHenry played a key role in pushing for a bill to regulate stablecoins. He also worked on a law aimed at shaping the structure of the crypto market. This bill gives the Commodity Futures Trading Commission control over digital commodities." Also, it makes the SEC responsible for digital assets that are part of an investment contract.

Therefore, McHenry's efforts helped set the stage for clearer rules in the crypto space.

The committee will likely choose a new chair this month or by December. Reps. French Hill from Arkansas, Andy Barr from Kentucky, Bill Huizenga from Michigan, and Frank Lucas from Oklahoma are among those being considered for the role.

All these lawmakers support crypto. For example, Hill leads the committee's digital asset panel. He has worked on passing crypto-related bills, including those about stablecoins.

A Republican-led committee will likely focus on stablecoins and market structure first. After that, it will probably turn to DeFi and NFTs. Ron Hammond, the director of government relations at the Blockchain Association, shared this insight with The Block. He explained that these topics will likely be prioritized.

Maxine Waters Pushes for Bipartisan Stablecoin Deal to be Passed This 2024

Maxine Waters from California is the current top Democrat on the House Financial Services Committee. She has played a major role in pushing for a stablecoin bill.

Waters has worked hard to get this bill passed. She has shown a willingness to see it completed. There is a possibility that the bill could pass before the end of 2024; Waters has been open to working with others to make that happen. Her efforts aim to provide clearer rules for stablecoins.

In September, Maxine Waters spoke during a congressional hearing. She called for a grand bargain on stablecoins," urging lawmakers to come together and reach an agreement.

Waters wanted to finalize the deal before the end of the year. She believed that doing so would help establish clear rules for stablecoins.

During the hearing, Maxine Waters spoke directly to Patrick McHenry. She reminded him of her previous statement about bipartisanship.

Waters said, I've made a public statement to you about bipartisanship." Then she challenged him by asking, Let's see what you do with it."

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