patrick mchenry

Lawmaker Highlights 2 Bills to Make US a Crypto Leader — Says Bitcoin Is ‘Unstoppable’

April 10, 2024 Bitcoin.com

Crypto-friendly Rep. Tom Emmer pursues nomination for House speaker

October 21, 2023 Coin Telegraph

Tom Emmer has been "making calls" to secure a nomination for the Speaker role, and it could be a boon for the crypto sector if he were to be voted in.

Crypto-friendly Republican Congressman Tom Emmer is pursuing a nomination to become House speaker, with the 62-year-old receiving endorsement from multiple lawmakers.

Congressman Patrick McHenry continues to oversee the position on an interim basis, following a first round of voting on Oct. 17 in which the Republican Party’s nominee for Speaker, Jim Jordan, failed to secure votes to overtake the role.

Emmer’s pursuit was initially highlighted on Oct. 20 by NBC News reporter Jake Sherman, who stated in a post on X (formerly Twitter) that Emmer “has told members of the House Republican Conference that he will seek the nomination for Speaker.”

“The Minnesotan is currently the No. 3 House Republican. He’ll immediately become the frontrunner in this race,” he added.

BREAKING -- TOM EMMER has told members of the House Republican Conference that he will seek the nomination for speaker.

The Minnesotan is currently the No. 3 House Republican.

He'll immediately become the frontrunner in this race.
— Jake Sherman (@JakeSherman) October 20, 2023

Outlets such as CBS News also reported that an unnamed source close to Emmer had confirmed that he was “making calls” in pursuit of a nomination.

As interim Speaker, McHenry lacks the authority to push legislation forward through in the House. As such, it has stalled the progress on various bills, including crypto-related ones, and highlighted the importance of voting in a new Speaker.

If Emmer were to become Speaker, the move would likely receive a warm welcome from members of the crypto community.

Emmer has spoken in favor of digital assets on many occasions and has a history of pushing back against the regulation by enforcement approach from the Securities Exchange Commission and its chairman Gary Gensler.

While he works to secure a nomination, Emmer has already received some backing for the move.

Congressman Brad Finstad released a statement on Oct. 20 supporting Emmer for the Speaker of the House role.

“From the day that I arrived in Congress, it has been a privilege to work alongside Tom and I have come to truly appreciate him as a mentor and as a friend,” he said, adding:

“The American people deserve a functioning Congress. It is my hope that my House colleagues can come together to get this election done, get the House back in order, and get back to working for the American people.”

Whether it’s across MN or across the country, @GOPMajorityWhip Emmer has the trust and respect necessary to lead. Proud to support him for Speaker.

Read my full statement: https://t.co/9awEimquY3
— Congressman Brad Finstad (@RepFinstad) October 20, 2023

Notably, Kevin McCarthy, a fellow Republican who was ousted from the Speaker role on Oct. 4, has also reportedly thrown his support behind Emmer.

“He is the right person for the job. He can unite the conference. He understands the dynamics of the conference. He also understands what it takes to win and keep a majority,” he said.

Magazine: Crypto regulation — Does SEC Chair Gary Gensler have the final say?

Crypto-friendly Patrick McHenry takes interim House Speaker position

October 4, 2023 Coin Telegraph

Coin Telegraph

Eight Republicans voted against Republican Representative McCarthy, making it the first time in U.S. history that the House Speaker has been ousted by Congress.

United States Representative and crypto-friendly lawmaker Patrick McHenry has been appointed as interim House Speaker after the high-profile ousting of U.S. House speaker Kevin McCarthy.

McCarthy’s ousting came after a 216-210 vote by Congress, with eight of the 216 votes coming from McCarthy’s fellow Republicans, marking the first time a House Speaker has been removed in U.S. history, according to Reuters.

The vote was prompted by a motion from one of McCarthy’s political rivals, Matt Gaetz, who called into question several contradictory promises made by McCarthy.

Though temporary, McHenry’s appointment could be seen as a small win for the digital asset sector. The Speaker sets the House’s legislative agenda, controls committee assignments, and schedules specific bills to be debated and voted upon in the chamber.

House Speaker is considered the most influential position in the U.S. government behind the President and Vice President.

Meanwhile, McHenry is regarded as one of the biggest challengers to the Securities Exchange Commission’s regulation by enforcement-style approach to the cryptocurrency sector.

McHenry also grilled SEC Chair Gary Gensler in his testimony before Congress last week, suggesting he’s attempting to “choke off the digital asset ecosystem.” McHenry also called Gensler out for refusing to be transparent with Congress about the SEC’s connections with FTX and its former CEO, Sam Bankman-Fried.

SEC Chair @GaryGensler refuses to schedule a Commission vote to provide Congress with requested documents.

Should Gensler continue to stonewall, Republicans will have no choice but to issue the first subpoena to the SEC from my Committee to compel their production. https://t.co/Aw5U0aJ0Tt
— Patrick McHenry (@PatrickMcHenry) October 2, 2023

McHenry also released the discussion draft “Digital Asset Market Structure Proposal” on June 1, which purports to provide clarity, fill regulatory gaps, and foster innovation in the cryptocurrency space, a paper that was praised by some industry leaders.

However, McHenry’s tenure as House Speaker may be short-lived, with an official vote on a new House Speaker set for Oct. 11, according to Bloomberg.

A Reuters report speculates that along with McHenry, there is a possibility that pro-crypto Representative Tom Emmer or even Donald Trump could be a possible replacement for McCarthy, though none have publicly expressed interest in taking the position.

50-50 we get a crypto champion as Speaker now, with Whip Emmer and Speaker pro tempore McHenry in the running. Wild day.

(Speaker of the House is third in power behind President and VP for the non-US followers out there.) https://t.co/2ow5li2lnw
— Ryan Selkis (@twobitidiot) October 3, 2023

Meanwhile, McCarthy has already confirmed he won’t run for House Speaker again.

Magazine: Opinion: GOP crypto maxis almost as bad as Dems’ ‘anti-crypto army’

5 lowlights of Gary Gensler’s evasive testimony before Congress

September 28, 2023 Coin Telegraph

Andy Barr

The United States Securities and Exchange Commission chief was asked whether the purchase of Pokemon trading cards is a security transaction and whether Bitcoin is a commodity.

Blamed for “kneecapping” the U.S. capital markets and slammed for dodging questions around Bitcoin and Pokemon cards, Gary Gensler appears to have had one hell of a grilling from Congress this week.

On Sept. 27, the United States Securities and Exchange Commission chief again found himself in front of lawmakers in a scheduled hearing to discuss his agency’s oversight of the markets.

Here are some of the highlights and lowlights of the hearing.

“You are the Tonya Harding of securities regulations.”

One of the more colorful analogies came from United States Representative Andy Barr, who accused Gensler of “kneecapping” the U.S. capital markets with regulatory red tape.

Barr referred to an old testimony from Gensler, where Gensler argued that the U.S. is the largest, most sophisticated and innovative capital market in the world and that it shouldn’t be taken for granted as “even gold medalists must keep training.”

“With all due respect Mr. Chairman, if the U.S. capital markets are a gold medalist, you are the Tonya Harding of securities regulations,” said Barr.

“You are kneecapping the U.S. capital markets with the avalanche of red tape coming out of your Commission.”

Barr is presumably referring to a scandal where U.S. ice skater Tonya Harding hired an assailant to attack her rival, Nancy Kerrigan, in the lead-up to the 1994 United States Figure Skating Championships and the Winter Olympics. Kerrigan ended up not competing in the U.S. championships.

Mr. Barr to Gensler:

“If the US capital markets are a gold medalist, you are the Tonya Harding of securities regulation because you are kneecapping the US capital markets…”

pic.twitter.com/D9VOxtXAGC
— John Dickens (@johnLdickens) September 27, 2023

“I wish the Biden administration would say you're fired.”

Meanwhile, U.S. Representative Warren Davidson also ripped into Gensler, saying he hoped that the Biden administration would fire him.

“I wish the Biden administration would say you're fired,” said Davidson.

Davidson accused Gensler of pushing a “woke” political and social agenda and abusing his role as the SEC’s Chair.

Gary Gensler’s tenure at the SEC highlights two key problems.

1) @GaryGensler problem
2) @SECGov structural problem

That’s why I introduced the SEC Stabilization Act to #FireGaryGensler and restructure the SEC. pic.twitter.com/Ud3giejKfZ
— Warren Davidson (@WarrenDavidson) September 27, 2023

The U.S. representative added that he hopes the SEC Stabilization Act he introduced with U.S. Representative Tom Emmer could make that happen.

“You’re making the case for this bill [SEC Stabilization Act] every day you’re acting as the Chairman,” he concluded.

Gensler wasn’t given the chance to respond.

Gensler reiterates Bitcoin isn’t a security

Asked by U.S. House Committee on Financial Services chair Patrick McHenry whether Bitcoin is a security, Gensler eventually relented, stating that Bitcoin didn’t meet the Howey Test.

“It does not meet the Howey test which is the law of the land,” Gensler said, implying that Bitcoin isn't a security.

McHenry then suggested Bitcoin must be a commodity, which Gensler avoided answering, saying the test for that is outside the scope of U.S. securities laws.

Gary Gensler says that #Bitcoin is NOT a security, but he refuses to say that it’s a commodity.

He’s running out of time. When a powerhouse like BlackRock asks for a Bitcoin ETF you MUST deliver. pic.twitter.com/yhKcMzfzx6
— The ₿itcoin Therapist (@TheBTCTherapist) September 27, 2023

Henry also suggested Gensler tried to “choke off the digital asset ecosystem” and refused to be transparent with Congress about the SEC’s connections with FTX and its former CEO Sam Bankman-Fried.

Gensler also wasn’t given the chance to respond to the claims made by McHenry.

Are Pokemon trading cards securities? It depends.

U.S. Representative Ritchie Torres used his time to quiz Gensler about his interpretation of what constitutes an investment contract.

Torres put Gensler to the test by asking whether purchasing a physical Pokemon trading card constitutes a securities transaction.

I cross-examined @SECGov Chair Gary Gensler about the term 'investment contract', which is key to determining his authority over crypto.

Gensler struggled to answer basic questions like whether an investment contract requires a contract. His evasions are deafening and damning. pic.twitter.com/EJcZEHiKGL
— Rep. Ritchie Torres (@RepRitchie) September 27, 2023

“Suppose I was to purchase a Pokemon card. Would doing so constitute a security transaction?”

Gensler responded — “I don’t know what the context is” — before eventually concluding it isn’t a security if it is purchased in a store. Torres then asked:

“If I were to purchase a tokenized Pokemon card on a digital exchange via a blockchain, is that a security transaction?”

“I’d have to know more,” replied Gensler.

Gensler then explained that it’s when the investing public can anticipate profits based upon the efforts of others — that’s the core of the Howey Test. Representative Torres called Gensler's "evasions" as "deafening and damning."

A sign of defiance

Meanwhile, among the back-and-forth cross-examinations between Gensler and U.S. Representatives, eagle-eyed observers noticed a Coinbase “Stand With Crypto” logo behind the SEC Chair.

BREAKING: Coinbase Stand with Crypto logo displayed at Gary Gensler hearing pic.twitter.com/IAwqyDEQea
— Miss Teen Crypto (@missteencrypto) September 27, 2023

The Coinbase-led initiative is a 14-month-long campaign that launched in August. It aims to push for cryptocurrency legislation in the U.S.

Coinbase also ran a “Stand with Crypto Day,” which took place in Washington, D.C. on Sept. 27 to advocate for better cryptocurrency innovation and policy.

Magazine: Binance, Coinbase head to court, and the SEC labels 67 crypto-securities: Hodler’s Digest, June 4-10

U.S. Treasury and Internal Revenue Service Publish New Proposed Crypto Tax Regulations

August 26, 2023 The Daily Hodl

Fear of blockchain will have ‘disastrous consequences’ — Ava Labs CEO testimony

June 13, 2023 Coin Telegraph

AVA Labs

Gün Sirer says the U.S. “won the first wave of the internet revolution” because it enabled responsible innovation. Now, it must do the same with blockchain.

Ava Labs CEO Emin Gün Sirer will be calling on United States officials to “nurture” and “support” responsible blockchain innovation, warning that they face “disastrous consequences” if they don't.

Gün Sirer’s comments in defense of what he describes as a “revolutionary technology” is part of a testimony that he is scheduled to give to the U.S. House Financial Services Committee on June 13 — the audience will include Chair Patrick McHenry, Ranking Member Maxine Waters and other members in the House Committee.

Gün Sirer’s testimony aims to explain how blockchain can “transform society” by making digital services “more efficient, reliable and accessible to all.”

My written testimony for the House Financial Services Committee hearing on blockchains and the future of digital assets is now public.

You can read it to preview what I’ll say and live stream the hearing at 2 p.m. ET tomorrow here:https://t.co/bv2pWTwCVT https://t.co/dtRlBmuN4F
— Emin Gün Sirer (@el33th4xor) June 12, 2023

It comes amid a slew of regulatory enforcement actions by the U.S. Securities Exchange Commission (SEC) and U.S. Senator Elizabeth Warren’s indicated plans to build an “anti-crypto army.”

But Gün Sirer fears that such action may backfire with “disastrous consequences” on the country’s economy:

“Failure to see the power of blockchain technology – whether due to a lack of understanding or misplaced fears of the technology – will have disastrous consequences.”

He added that a “failure” to provide a “sensible regulatory framework” would not only blowback economic growth but also “make it easier for bad actors to conduct illicit activities.”

I am honored to discuss the need for free, safe, and responsible blockchain innovation in the U.S. before the House Financial Services Committee next Tuesday. I look forward to advocating for the technical and scientific merits of these systems. https://t.co/FUuuXmdrg1
— Emin Gün Sirer (@el33th4xor) June 9, 2023

The Ava Labs CEO explained that the U.S. “won the first wave of the internet revolution” in the early 2000s because it enabled “responsible freedom to innovate.”

He’s now calling on U.S. officials to “follow the same path” in what he describes as an increasingly “digitally-native world.”

“As we move towards a more digitally-native world, aided by AI, virtual reality, and a work-from-home society, we will have to rely increasingly on digitally-native transfer and programmability of value.”

“Blockchains are the clear technological answer to these needs,” Gün Sirer said, adding that blockchains will one day capture a large share of the world’s economic value:

“The addressable market for digitizing the world's assets and transferring value safely across the internet is greater than the sum of all the value of all existing assets.”

Gün Sirer isn’t the only industry figure to share this view either.

In an interview with CNBC Crypto World on June 8, Chainlink Labs CEO Sergey Nazarov explained that it is “absolutely inevitable" that much of the world’s economic value will soon find its way on-chain.

Magazine: Unstablecoins: Depegging, bank runs and other risks loom

Congressman McHenry announces joint hearings to address market structure around digital assets

April 29, 2023 Coin Telegraph

Coin Telegraph

Patrick McHenry suggested that the hearings will look to add to the regulatory efforts being done on the bipartisan bill led by Senator Cynthia Lummis and Senator Kirsten Gillibrand.

Patrick McHenry, the Chairman of the House Financial Services Committee, has announced a series of joint hearings in May that will focus on addressing the market structure around digital assets in the U.S.

The move was revealed via a joint announcement on April 27 from Congressman McHenry, Glenn Thompson, Chairman of the House Agriculture Committee, French Hill, Chairman of the Digital Assets, Financial Technology and Inclusion Subcommittee, and the Chairman of the Commodity Markets, Digital Assets, and Rural Development Subcommittee, Dusty Johnson.

“Our Committees are embarking on an unprecedented joint effort to pass and sign into law clear rules of the road for the digital asset ecosystem. We must strike the appropriate balance to protect consumers without stifling responsible innovation,” the joint statement reads.

Speaking as part of a panel alongside crypto-friendly Senator Cynthia Lummis during the 2023 Consensus event on April 28, McHenry added more context to the upcoming hearings:

“We’re going to hold joint hearings when we return in May. This is going to be the first time we have had a holistic view for a house committee hearing around the regulation, our market structure around digital assets, and a holistic view of it.”

“What we plan to do over the next two months is report a bill out that deals with the capital raising piece for digital assets, all the way through to how a product can go from a securities regime to commodities regime and also at the same time, preserve our rights around products that are neither neatly [put] into a securities regime or commodities regime,” he added.

McHenry also stressed that the aim of the hearings is to establish a bill providing regulatory clarity to the crypto sector, which adds to the work being done on the bipartisan bill led by Lummis and Senator Kirsten Gillibrand.

@PatrickMcHenry said U.S. House Will Have Crypto Bill in 2 Months. pic.twitter.com/e06Sx9ec2H
— John Montague ("The ETH Lawyer") (@0xethlaw) April 28, 2023

The Responsible Financial Innovation Act, also known as the Lummis-Gillibrand bill, was initially introduced in the U.S. Senate in June 2022 and addresses Securities and Exchange Commission (SEC) and Commodities Futures Trading Commission (CFTC) jurisdiction, stablecoin regulation and crypto taxation, among other things.

The wide-sweeping bill has faced delays, likely due to its complexity for non-crypto-versed Senators. Lummis and Gillibrand have since revised the bill and are expected to release the next draft soon.

“This is the work that Senator Lumms and Senator Gillibrand put in on the Senate side, but this is going to be our attempt in the House [of Congress],” he said.

Commenting on the revised bill, Lummis suggested that this iteration will likely have an additional focus on “national security interests” such as cyber security.

“Some of the people that I speak to that remain very skeptical about digital assets are concerned that cybercrime is not adequately addressed in our bill. So I think you’ll see a stronger cybercrime aspect to our bill. I think you’ll see some provisions that require certain registration [...] so that companies are properly regulated and vetted,” she said.

In my estimation, the reason so many young Americans are into #Bitcoin is because it is #soundmoney. The federal govt’s blank check spending habit, coupled with the complete erosion of the gold standard and the development of the internet, led us here. Inevitable.
— Cynthia Lummis (@CynthiaMLummis) April 25, 2023

Magazine: Crypto regulation — Does SEC Chair Gary Gensler have the final say?

Lawmaker Highlights 2 Bills to Make US a Crypto Leader — Says Bitcoin Is ‘Unstoppable’

Crypto-friendly Rep. Tom Emmer pursues nomination for House speaker

Crypto-friendly Patrick McHenry takes interim House Speaker position

5 lowlights of Gary Gensler’s evasive testimony before Congress

U.S. Treasury and Internal Revenue Service Publish New Proposed Crypto Tax Regulations

Fear of blockchain will have ‘disastrous consequences’ — Ava Labs CEO testimony

Congressman McHenry announces joint hearings to address market structure around digital assets

Ether’s Security Status Remains Unclear as SEC Chair Gensler Fails to Answer Lawmaker’s Question

SEC Chair Gary Gensler To Face Congress Over Strategy on Digital Assets

House Republicans Demand Answers From SEC Over FTX Co-Founder’s Arrest

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