Investment bank TD Cowen argues that we should have more realistic expectations about the passage of cryptocurrency-related legislation next year.
Jarrett Seiberg, managing director of TD Cowen’s Washington research group and financial services practice, said there is a growing risk of political gridlock surrounding the cryptocurrency market structure bill, FIT21, and the Senate Agriculture Committee bill.
“We believe that optimism is misplaced, as we believe turnout on both bills is declining this year, increasing the risk that the bills will be politically stranded next year,” Seiberg said in a research note Monday.We are also skeptical about next year, regardless of the election. It is likely that both parties will “We would like to draw more contributions before we can finally deliver results to the industry.”
Seiberg noted that this could happen despite the crypto community’s “aggressive political giving.” He cited a recent report from the nonprofit Public Citizen, which found that crypto companies have donated $119 million this year (about 48 percent of corporate political donations), while the cryptocurrency-focused Fairshake PAC has also raised $95 million.
As previously reported by The Block, the U.S. House of Representatives passed the Financial Innovation and Technology for the 21st Century Act (FIT21) in May 2022, which aims to broadly regulate the cryptocurrency industry and give the CFTC the power to regulate crypto assets.
Disclaimer: The Block is an independent media outlet providing news, research and data. As of November 2023, Foresight Ventures is the largest investor in The Block. Foresight Ventures invests in other companies in the cryptocurrency space. Cryptocurrency exchange Bitget is an anchor LP of Foresight Ventures. The Block continues to operate independently to provide objective, impactful and timely information on the cryptocurrency industry. Below are the current financial disclosures.
© 2024 The Block. All rights reserved. This article is provided for informational purposes only. It is not provided or intended to be legal, tax, investment, financial or other advice.
About the Author
MK Manoylov has been a reporter for The Block since 2020, joining just before Bitcoin first broke $20,000. Since then, MK has written nearly 1,000 articles for the publication, covering all aspects of crypto news but with a penchant for NFTs, metaverse, web3 games, fundraising, crime, hacking, and crypto ecosystem stories. MK holds a graduate degree from the Science, Health, and Environment Reporting Program (SHERP) at New York University and has also covered health topics for WebMD and Insider. You can follow MK on X @MManoylov and on LinkedIn.