US Lawmakers To Chart Crypto’s Next Chapter in Crucial Hearings

• Three stablecoin bills have been proposed in recent weeks: Two from Republicans and one from Democrats.
• A vote on changing DeFi tax rules could be the first crypto bill to be voted on this year.
• Trump’s government has yet to nominate the new SEC and CFTC Chairs.

This week, a series of significant and historic hearings surrounding cryptocurrency and the U.S. economy are scheduled to take place.

Debanking, Bitcoin (BTC), stablecoins, decentralized finance (DeFi) and non-fungible tokens (NFT) are set to be discussed and debated, officially kicking off proceedings for Donald Trump’s pro-crypto agenda.

The Crypto Ecosystem

Against the backdrop of “Operation Chokepoint 2.0” revelations, the Senate Banking Committee’s newly created digital asset will begin the week’s crypto-centric meetings with its first-ever hearing on Feb. 11, 2025.

Unsubtly entitled “A Golden Age of Digital Assets: Charting a Path Forward,” the hearing will explore existing crypto and blockchain use cases. It’ll also observe how the ecosystem was suppressed under Joe Biden’s government.

Furthermore, it will discuss the necessary legislation needed to protect consumers and unlock crypto’s potential in the U.S.

There are six resolutions/pieces of legislation being tabled at the discussion. Many make calls for the U.S. Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC) and other government entities to begin researching and drafting reports into various realms of blockchain and crypto.

More specifically, one draft seeks to explore requiring the SEC, CFTC and the Secretary of the Treasury to issue a report on decentralized finance.

The “Stablecoin Transparency and Accountability for a Better Economy (STABLE) Act of 2024” looks to establish clear and quality frameworks for stablecoin payments. It follows closely behind the GENIUS stablecoin bill, which may receive mention at the hearing.

Interestingly, there is a discussion draft regarding NFTs. The “New Frontiers in Technology” (also NFT) Act seeks to clarify that NFTs aren’t investment contracts or security transactions. It also has requirements for the Government and Accountability Office (GAO) to undertake a thorough year-long NFT study.

Federal Reserve

Taking place on Feb. 11, Federal Reserve Chairman Jerome Powell is scheduled to appear before the Senate Banking Committee and Urban Affairs Committee. This is part of a semiannual monetary policy testimony where Powell will report on the economy.

With regards to crypto, Powell’s softening stance on Bitcoin may be of interest to the crypto-friendly Committee. After years of keeping crypto at arm’s length, Powell has likened BTC to gold.

Flying in the face of debanking practices, he recently said that banks can “perfectly” serve crypto clients, if they understand the risks, “and of course we’ll support that.”

Powell will also be facing questions from the House Financial Services Committee on Feb. 12. Though crypto doesn’t often come up in these hearings, stablecoins and the subject of a Bitcoin Strategic Reserve may arise.

Changes to the Fed’s interest rate policies, which often send crypto markets in one direction or another, are presumed “on hold” until at least June 2025.

Votes and Key Hires

The first crypto bill that may be voted on in 2025 relates to taxes. Proposed by Senator Ted Cruz and Representative Mike Carey, the bill seeks to repeal a rule that requires DeFi platforms to report transactions to the government.

It is unknown if the bill has reached backing the threshold from Members of Congress. However, a week ago it was just two away from the goal.

At present, Trump’s SEC and CFTC nominations are yet to be confirmed. These are arguably the final appointments needed to allow the pro-crypto administration to begin taking concrete steps toward fulfilling the “Bitcoin President’s” agenda.