epublicans are expected to take control of the House of Representatives next year, which could significantly impact the crypto industry as regulators and lawmakers work to create new rules for digital assets.
The power shift will have an impact on negotiations on new digital asset rules, giving Republicans more clout in Congress to influence policy on stablecoins and oversight of crypto's spot markets, as well as the ability to impose more oversight pressure on regulators.
However, due to the divided nature of Congress, Senate rules, and the ongoing Democratic control of the White House and Senate, any legislation will require bipartisan support to become law.
Given the relatively new debate surrounding the topic, which has yet to become an entirely partisan issue, crypto legislation is expected to have a greater chance of becoming law than policy in most other issue areas. However, the recent implosion of FTX, with the repercussions of its fall reverberating throughout the digital asset industry, may complicate matters.
Republicans will keep at least 218 House seats, the number required for a majority in that chamber, and that number could rise with seven races still to be decided.
Rep. Patrick McHenry, R-North Carolina, is set to lead the House Financial Services Committee. The North Carolina Republican, a longstanding leader on fintech policy issues ranging from crowdsourcing to cryptocurrency, has collaborated with his Democratic equivalents, current Committee Chair Maxine Waters, D-Calif., on developing a new legal framework for stablecoins. On Wednesday, the two also declared a hearing on the FTX collapse and its broad impact on digital assets.
The Republican from North Carolina told reporters today that digital asset law will be a top priority during his chairmanship.
"I believe we need to define clear rules of the road because our current regulators in this administration are doing nothing to protect consumers. In fact, they've made matters worse," McHenry said.
Rep. Tom Emmer, R-Minn., another vocal crypto supporter, was elected House Republican whip.
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