The future of crypto legislation has been put to the test as its trajectory is threatened by the US House Speaker drama. Majority leader Steve Scalise stepped down, and this left the Republic Party in jeopardy, bringing doubts on prospects of digital asset legislation advancement.
Trying to resolve this, Rep. Partick McHenry, the House Financial Service Chairman, is unable to put his focus on digital assets development matters as he has taken up the temporary role of acting speaker. The Republicans’ ongoing insight could bring about a negative impact on the crypto community, and hopes for crypto legislation in 2023 are unclear.
Crypto sentiments on speaker drama
Crypto legislation under the SEC and CFTC has been a legal headache for investors in the global leading economy. As though that was not enough, Rep. Steve Scalise’s (R-La) withdrawal created a leadership vacuum that elevates challenges in crypto legislation.
Steve Scalise opted to drop out after two days of campaigning for the no. 1 House position. Regardless of narrowly receiving the nomination, his frustration of getting the 217 votes needed to get the job was brought about by his failure to win the support of enough lawmakers. His actions of dropping out of office imply that crypto legislation proceedings are on hold.
Scalise emphasized the need for unity within the party to benefit the country’s crypto future at large. In his words, he stated:
This country is counting on us to come back together. This House of Representatives needs a Speaker, and we need to open up the House again. But clearly, not everybody is there, and there [are] still schisms that have to get resolved. I never came here for a title. I’ve had some great titles. I am the Majority leader of the House, and I love the job I have.
Rep. Steve Scalise’s (R-La)
Rep. Jim Jordan (R-Ohio), the House Judiciary Committee chair, is the leading remaining candidate. However, he has failed to secure a majority of the Republicans’ backing.
Impact of the Republican House in-fight
Currently, two specific bills are pending that focus on digital assets, and with the in-fight still going on, this showcases an unclear path for digital assets legislation. One bill is to set up government frameworks that encompass U.S-issued stablecoins. The other bill focuses on creating a regulatory system that has a wider reach for decentralized finance markets.
The House’s No. 3, Tom Emmer (R-Minn), who is also a major crypto fan, comes in as the majority whip after the power vacuum. Moreover, even if he steps up to the role, he wouldn’t have more power, and as such, he would only take up the role if he is sought out.
Additionally, regardless of being a crypto enthusiast, he won’t be tasked to find a nominee for the top position since he isn’t No. 2 in the House hierarchy.
Scalise stepping down leaves Rep. Patrik McHenry (R-N.C) as the temporary replacement, and this results in less focus on the House Financial Service Committee Store since he is the chairman. The committee focuses on crypto legislation, and his divided focus means the future of digital assets is uncertain. As such, pushing crypto legislation wouldn’t be a top priority.
Scalise stepping down has caused unforeseen challenges that could certainly cause issues with crypto legislation. Still, the House is intact but unstable since the vacuum has caused shifts in responsibilities that could, in turn, spill to digital asset regulations. The fate of the pending bills hangs in the balance as a new nominee is sought out by the Republicans.
Additionally, this process could impede the progress of critical legislative proceedings and present an unclear path for cryptocurrencies in 2023 and 2024.
Considering the state of affairs faced by the US House of Representatives implies that there is an uphill battle for the No. 1 position. The hostile environment holds on to pass key crypto bills.
