The Legislative Front Post-FTX

Key Insights

• The midterm elections divided Congress leaving Republicans with a razor-thin majority in the House. Any crypto legislation will require bipartisan support, making it more difficult to pass overreaching and rushed regulations.
• Crypto-friendly policymakers Rep. Emmer and Rep. McHenry have secured key leadership roles in the House and Financial Services Committee with plans to call hearings and launch investigations into SEC Chair Gensler.
• Despite recent events around FTX, senators behind the Digital Commodities Consumer Protection Act (DCCPA) are still trying to move forward with the bill. However, industry leaders and crypto policy advocates believe the bill to be dead.
• Two congressional hearings are planned for December, which are expected to involve SBF, regulators, and individuals involved at Alameda Research and Binance.

FTX’s collapse has attracted much attention from U.S. regulators and policymakers. Currently, crypto investors are primarily concerned about reactionary and overreaching legislation that could negatively impact the industry – or worse, kill it, as some fear.