CryptoLink - January 2023

Whether or not there is a thaw in the long “crypto winter,” U.S. policymakers seem determined to bring some regulatory certainty to the industry. And, contrary to claims that the dramatic events of last fall would undercut the likelihood of legislation passing the House and the Senate, key lawmakers in both parties remain committed to action this year. Progressive members of Congress, including the Chairman of the Senate Banking Committee, remain extremely skeptical of the industry. Along with Chairman Gensler and others in the administration, they view digital assets largely through the lens of illicit activity, risk to the larger financial system, and consumer protection. While not denying these genuine concerns, there is growing bipartisan support for legislation that would address these issues while creating a U.S. regulatory regime that would make the United States a hub for digital asset innovation. If anything, recent turmoil in the industry has only encouraged these pro-crypto lawmakers to double down on their legislative efforts.