The chaotic vote by US lawmakers rejecting House Speaker Kevin McCarthy has cast doubt and potential delays over the Congressional advancement of cryptocurrency regulation.
Last week, legislators voted to vacate the Speaker position entirely after multiple failed attempts to elect McCarthy. This marked the first time in history that the House lacked leadership.
An election re-do is slated for October 11th, with Republican representatives Jim Jordan and Steve Scalise considered leading Speaker candidates to replace McCarthy.
But the limbo has stalled House proceedings. With committees frozen and agendas blocked, momentum on crypto bills from the last session could be pushed to late 2022, according to experts.
The Blockchain Association’s Ron Hammond said the turmoil paralyzes most legislative fronts, though he still sees pro-crypto figure Patrick McHenry as key despite his interim status.
Hammond believes major external events like the Sam Bankman Fried trial could also divert lawmaker focus further into next year. With the 2024 presidential race looming, political bandwidth faces encumbrances.
Others, like Ji Kim of the Crypto Council for Innovation, noted that crypto regulation had become a priority item previously. However, speaker uncertainty likely hinders progress on bills around stablecoins and blockchain innovation.
Neither Jordan nor Scalise have revealed clear crypto stances to replace crypto-friendly McCarthy. Prolonged votes last session delayed McCarthy’s Speakership until January, holding up all policy action.
Some industry observers hope a slim slate of crypto measures passes during the lame-duck period before January’s swearing-in. But a potential November government shutdown may sink chances.