Pro-Bitcoin Lawmakers Pack Congress But Partisan Gridlock Looms

Authored by Aaron Wood via CoinTelegraph.com,

Ahead of President-elect Donald Trump’s inauguration on Jan. 20, the Republican-majority US Congress has been busy appointing pro-crypto lawmakers to key positions in the legislature.

The House of Representatives Subcommittee on Digital Assets, Financial Technology and Artificial Intelligence — part of the Financial Services Committee — is now packed with pro-crypto legislators. 

But in an era of hyper-partisanship in Washington, observers are skeptical whether common-sense legislation for cryptocurrencies can overcome partisan gridlock. 

And while crypto lobbies and political action committees played a crucial role in funding a number of campaigns in 2024, there are other pressing matters facing lawmakers — like the rising cost of living and escalating conflicts in Europe and the Middle East.

Crypto simply may not be at the top of the list of legislative priorities. 

How crypto may get caught in partisan gridlock

The majority of Congressional Republicans have already shown themselves as proponents of a pro-crypto, laissez-faire approach to regulation. The party has taken great pains to contrast itself with the more cautious Democrats, who prioritize investor protections and financial oversight.

Indeed, the Grand Old Party’s official 2024 platform states:

“Republicans will end Democrats’ unlawful and unAmerican Crypto crackdown and oppose the creation of a Central Bank Digital Currency. We will defend the right to mine Bitcoin, and ensure every American has the right to self-custody of their Digital Assets, and transact free from Government Surveillance and Control.”

The site DoTheySupportIt (“it” being crypto) tracks various representatives’ stances on crypto. The methodology is rough, but it gives a snapshot of who supports crypto in Washington — and it’s almost all Republicans.

Still, it isn’t as politicized as “wedge” issues like reproductive rights, gun ownership, or LGBTQ+ inclusivity and acceptance. At least not yet.

One reason it isn’t so politicized is the complicated nature of crypto regulation. As noted by Dylan Desjardins, a research associate at George Washington University’s Regulatory Studies Center, “Grouping voter sentiments into neat categories is further complicated by the complexity of crypto-related issues generally.”

“For example, government propagation of digital currency might be thought of as loosening crypto regulation, but cuts against conservative distrust of government.”

Speaking to Cointelegraph, Representative Tom Emmer — who was recently appointed to the House Digital Assets Subcommittee — disputed the idea that crypto was a partisan issue, noting that a number of House Democrats supported digital-assets-related bill FIT21 last year:

“This isn’t a Republican or Democrat issue. This is an American issue, and I am confident that we will continue to come together, in a nonpartisan way, to provide the necessary regulatory guardrails to give digital asset entrepreneurs the confidence to innovate and everyday Americans the confidence to engage with this technology.”

Filecoin Foundation chair Marta Belcher would seem to agree, telling Cointelegraph, “Many policymakers on both sides of the aisle support crypto. I don’t think crypto is a partisan issue, just like ‘the internet’ isn’t a partisan issue. I don’t think, in 2025, either party can be ‘anti’ an entire technology if they’re thinking seriously about America’s future.”

However, as Desjardins notes, recent experience shows that formerly uncommon issues like trans rights or “critical race theory” can balloon into major points of contention. Another market crash or FTX-like incident — wherein investors lose billions due to lack of oversight — could change public perceptions around crypto and how it should be regulated.

Is crypto a priority?

The crypto industry in the US collectively spent over $130 million soliciting promises and guarantees from lawmakers — but Washington’s K Street is full of moneyed interest groups, and crypto is still a relative newcomer to the political process.

Speaking to CBS, House Speaker Mike Johnson said the Republican-led Congress’ priorities include tax breaks and to “get the economy humming again.”

Americans for Prosperity, a powerful libertarian conservative think tank affiliated with the Koch brothers, noted legislative priorities like renewing the 2017 Trump-era tax cuts, deregulating restrictions on the energy industry, and ending what it perceives to be wasteful government spending.

Emmer, who refers to Trump as the “first crypto president,” says crypto fits into Trump’s broader efforts to stimulate the economy. “We advocate for policies that empower everyday Americans to control their financial futures. By providing clear guidance for crypto businesses, we ensure everyone can confidently engage with this revolutionary technology.”

According to Emmer, Congress’ first priorities vis-a-vis crypto are to “focus on passing comprehensive market structure and stablecoin legislation.”

Indeed, stablecoins could be an easy win for representatives who took money from crypto lobbies. There is more bipartisan support for stablecoin legislation in Congress.

In recent years, Representative Patrick McHenry introduced the Clarity for Payment Stablecoins Act of 2023, while Wyoming Republican Senator Cynthia Lummis and New York Democratic Senator Kirsten Gillibrand submitted the Lummis-Gillibrand Payment Stablecoin Act. 

Miller Whitehouse-Levine, CEO of decentralized finance research and advocacy group DeFi Education Fund, told Bloomberg there’s a “broad consensus” regarding stablecoin regulation.

“The McHenry bill that was marked-up in mid-2023 has been well-socialized and was negotiated with [Democratic Representative Maxine] Waters. I think that anything that passes will look largely similar to that bill.”

What can the crypto industry expect from Congress? 

If Congress is known for anything, expediency is not it. Even if crypto is high on representatives’ docket, the wheels of legislation move slowly. Various rewritings and drafts must pass through committees before they can even reach a vote — let alone the president’s desk. 

Major changes pushed by the crypto industry could still take a long time and may not look exactly as proponents expect.

Belcher said that “crypto market structure legislation is likely to move relatively fast this year — or, fast for Congress.” 

Crypto lobbyists’ more ambitious plans, like the Bitcoin reserve bill, may have less of a chance. Castle Island Ventures founding partner Nic Carter said in a recent interview with Bloomberg that he thought it was a long shot, as support in Congress for a Bitcoin reserve is tepid. 

Dave Grimaldi, executive vice president of government relations at Blockchain Association, said that electoral calculus could affect how quickly crypto legislation moves forward. Firstly, he argued that pro-crypto Republicans will likely show some bipartisanship in passing new regulations before the mid-terms in 2026, when the majority could change.

Secondly, he noted the influence of the crypto lobby and the crypto as a voter issue:

“Members of Congress have seen that it is a good and fortuitous thing for them to be on the open-minded side of this industry rather than against it.”

“There are [...] pro-crypto candidates who won and were funded by our industry and had votes coming to them from crypto users in their district. [...] And then there were also incumbent, sitting members of Congress who lost their seats because they were so negative for completely unnecessary and illogical reasons.”

Crypto industry lobby Fairshake is already raising money for the mid-term elections in 2026, so anyone in a vulnerable district — i.e., anyone looking at a competitive race in 2026 — can’t afford to be seen as anti-crypto.

For crypto, the dust of the crypto landscape in Washington hasn’t settled. Certain elements of the industry enjoy tentative bipartisan support, but there is still potential for crypto to turn into a political football. 

Much will depend on whether the industry gets the guardrails it believes it deserves, which — if you’re counting on Congress — could take a very long time.