Trump Win Could Propel Crypto Market Structure Legislation Forward: Bitwise Exec

Crypto Reporter

Shalini Nagarajan

Crypto Reporter

Shalini Nagarajan

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Shalini is a crypto reporter who provides in-depth reports on daily developments and regulatory shifts in the cryptocurrency sector.

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Last updated:

October 17, 2024 04:51 EDT

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A Donald Trump win this presidential election could advance the long-stalled crypto market structure legislation forward, according to Katherine Dowling, chief compliance officer at Bitwise Asset Management.

During a recent Q&A session, she discussed the potential impact of the upcoming election on crypto regulation, where she specifically highlighted the importance of the Financial Innovation and Technology for the 21st Century Act (FIT21). This is a legislative proposal aiming to clarify regulatory oversight of digital assets.

FIT21 seeks to address the ambiguity surrounding crypto regulation by defining clear roles for the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC). The bill proposes explicit definitions for different types of digital assets, determining which agency should regulate each category.

“It’s incredibly important. And it’s been lacking in the crypto space for a while,” Dowling said.

GOP Leadership Could Resolve FIT21 Debate: Bitwise

Under a Republican administration, Dowling believes there would be a quicker path to enacting market structure legislation. She pointed to the ongoing debates between Rep. Patrick McHenry and Rep. Maxine Waters over FIT21, which have stalled progress due to partisan disagreements.

McHenry supports FIT21 from the perspective that regulatory clarity is essential for the US to remain competitive globally in fintech. In contrast, Waters has shown concern over what she perceives as insufficient consumer safeguards within the bill.

Political Stakes High for Crypto in Upcoming Presidential Election

Dowling noted that the presidential elections matter now more than ever for the crypto industry because cryptocurrency has become a significant issue for voters. “Down the line, we hope that there aren’t politics around crypto just like the early days of the Internet,” she remarked.

She drew parallels between the current state of crypto and the early days of the internet, where bipartisan debates occurred over various aspects of the emerging technology. “Crypto is an innovation. It’s a technology, and it shouldn’t be political, but in this election cycle, it has become political,” she added.

As the election approaches, the crypto community is closely watching developments that could shape the future of digital assets in the United States. The outcome holds significant implications for regulatory clarity and the industry’s ability to innovate and grow without undue political interference.

Trump was last leading by 19.7% over Democratic candidate Kamala Harris, according to a prediction poll on Polymarket as of Oct. 17.