Crypto regulation must go through Congress for lasting change — Wiley Nickel
Former Congressman Wiley Nickel has made a compelling case for the necessity of formal congressional legislation to establish lasting and effective cryptocurrency regulations in the United States. In a recent interview with Cointelegraph, Nickel emphasized the importance of bipartisan efforts to develop comprehensive crypto policies that would endure beyond temporary executive actions. He noted, “If you want lasting change in Washington, you must move legislation through Congress.”
Nickel pointed out the instability of relying on executive orders for regulatory frameworks, highlighting the challenges and confusion that can arise, as seen during Gary Gensler’s tenure at the SEC. He stressed that legislative change in Congress is essential to avoid the back-and-forth nature of executive directives, which can be reversed or modified by subsequent administrations.
President Trump’s January 23 executive orders, which included establishing the Working Group on Digital Assets and prohibiting the development of a central bank digital currency (CBDC), serve as prime examples of the limitations inherent in executive action. These orders can easily be undone, making the case for a more permanent legal framework.
Current legislative efforts indicate that Congress is indeed moving towards more substantial crypto legislation. Representative Tom Emmer has reintroduced a bill aimed at banning a CBDC in the U.S., while Senator Cynthia Lummis has also reintroduced the Bitcoin Act, which permits the U.S. to purchase more than 1 million Bitcoin. This legislation builds on earlier proposals but seeks to enhance the nation’s crypto stance in a more formalized manner.
Moreover, Representative Byron Donalds has announced his intention to draft legislation to codify the Bitcoin strategic reserve established under Trump’s executive order, further providing legal protection against any future administrative changes. Additionally, the House of Representatives recently repealed a controversial IRS broker rule that required decentralized finance platforms to report detailed information to the IRS, signaling a shift towards a more lenient regulatory environment for crypto entities.
At the Blockworks Digital Asset Summit, Representative Ro Khanna expressed optimism that Congress could pass comprehensive crypto regulations by 2025, including both a stablecoin bill and a market structure bill. This timeline reflects a growing recognition of the need to create a solid regulatory foundation for the evolving crypto landscape.
As discussions unfold, it remains crucial for industry stakeholders and policymakers to collaborate in developing legislation that addresses the unique characteristics of digital assets while providing necessary consumer protections. The ongoing legislative actions underscore a wider commitment to solidifying crypto regulations that survive beyond the shifting political landscape.
