CryptoLink - June 2024 Updates

The House of Representatives continues to look to the Senate for steps forward in passing legislation in the cryptocurrency space. The Senate has yet to take action on the 21st Century Act (FIT21) (H.R.4763), which passed the House by a comfortable margin of 279-136 on May 22, 2024. FIT21 is a proposed landmark piece of legislation that would enact a comprehensive regulatory framework for the digital assets industry. Sens. Cynthia Lummis (R-WY) and Kirsten Gillibrand’s (D-NY) Lummis-Gillibrand Responsible Financial Innovation Act (S.2281) also awaits consideration in the Senate. Testifying to the Senate Appropriations Committee on June 13, U.S. Securities and Exchange Commission Chair Gary Gensler stated that full regulatory approval for spot Ether ETFs would be complete by the end of this summer. Gensler once again did not commit to a position on the issue of whether Ethereum is a commodity subject to SEC jurisdiction. Separately, on May 22, the Senate Intelligence Committee approved The Intelligence Authorization Act for Fiscal Year 2025, an annual funding package for the intelligence community. The legislation includes provisions that would target potential ties to terrorism related to digital assets and cryptocurrency. Given recent bipartisan support for lenient/less restrictive crypto legislation, expect for the crypto-related provisions in this bill to face significant bipartisan opposition as it moves through the Senate and House.