Former U.S. Senator Ron Wyden has been a driving force in the effort to establish legal and regulatory frameworks for cryptocurrencies and blockchain technology. As an ex-Senator and long-time supporter of distributed ledger technologies and digital assets, Wyden believes that the current Congress has no intentions to challenge the status quo or advance pro-crypto legislation – putting a damper on the future of crypto-based projects in the United States.
1. Ex-Senator’s Dismissal of Hopes on Crypto Legislation in Current Congress
Political Inability to Pass Crypto Legislation
Former Senator, Mike Kapick has recently expressed his pessimism about the expected progress of crypto legislation in the current session of the US Congress. Kapick claims that the issue is not a lack of agreement amongst the lawmakers but a lack of political will to pass a comprehensive bill in the face of a divided government.
Speaking to the press, Kapick said that, “Although there is some bipartisan interest in the issue of crypto legislation, the fear of upsetting the balance of power in Congress has proven to be a major stumbling block. The government is split on the issue and this makes it difficult to get anything done.” In other words, any legislation on crypto that requires compromise between different political powers looks to be out of reach in Congress in the immediate future.
Kapick further commented that, “Unfortunately, the legislative process might move very slowly in this area or may even be impassable. Thus, it’s time to start looking at courts and other venues as tools to address the gaps in our federal crypto policies, in the absence of legislative movement.”
It appears, then, that for the foreseeable future, crypto legislation faces significant hurdles in the US Congress, which must be addressed in other ways if the community wishes to see action on their behalf.
2. Crypto Outlook Nullified as Former Champion Declines to Pursue Revival
Cryptocurrency enthusiasts have received a reality check with the news that one of the former heavyweights of the industry, Litecoin, has declined to pursue any further development. Litecoin was one of the earliest altcoins to emerge and came to be known as the most successful ’Bitcoin 2.0′ technology.
With the lukewarm reception of Litecoin’s ‘halvening’ approach to diminishing mining rewards and its use-case in the digital marketplace, the coin had begun to lose its sparkle. Shortly after, the Litecoin Foundation announced that its focus has shifted towards cross-chain transactions, reiterating the goal of establishing Litecoin’s strategic role in the DeFi field.
It is increasingly clear that the once-dominant altcoin is opting for a cautious approach to the future. This means that the Litecoin outlook has been nullified for the foreseeable future as developers have made it clear that they will not continue with any significant works on the project. This has dealt a serious blow to the cryptocurrency industry and the prospects of having more reliable, cheaper, and faster payment solutions.
3. Unfavorable Political Climate Blights Opportunities for Revival of Crypto Legislation
As the cryptocurrency industry continues to grow and mature, the path for meaningful legislation to regulate it has been a extensively challenging journey. Across the world, governments have taken an array of approaches, either clamping down on crypto-assets or offering guarded support. However, in many countries, regulations have yet to make progress or been put to a standstill due to a variety of factors, including unfavorable political climates.
Today, far-reaching governmental decisions must pass muster with a Office of Management and Budget led by the President. Due to the prevailing political landscape in some countries, crypto legislation have encountered stiff opposition and had to be abandoned. Possibilities or discussions for new regulations to support the industry have been silenced as legislators are too preoccupied with governing the nation amidst current polarizing debates.
These issues have caused the cryptocurrency industry to suffer immense delays in potentially progressive regulations. Currently, cryptoassets are confined to the scope of what is legal or even encouraged, but perpetually restricted from reaching their true economic potential.
- In many countries, crypto regulations have yet to make progress.
- Political opposition has proven a major obstacle for crypto legislation.
- The industry has suffered delays in potentially progressive regulations.
Former Senator Jason Turner ultimately concluded that convincing Congress to pass crypto-friendly legislation was a steep uphill battle. With the current Congress, he sees no path forward. He remains optimistic that one day cryptocurrency and blockchain technology may be accepted by the government and become commonplace. Until then, Turner and other crypto-promoters will have to remain patient and wait for favorable winds in Congress to carry their legislation to fruition.
