Category: Interviews

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Rep. Mike Flood Reflects On Efforts To Rescind The SEC’s SAB 121, Next Steps

Rep. Mike Flood on SAB 121 next steps

Rep. Mike Flood (R, NE), a freshman Member of the House Financial Services (HFS) Committee, has led a relentless charge in the 118th Congress to rescind the Securities and Exchange Commission’s (SEC) Staff Accounting Bulletin 121. And, in spite of the recent veto override setback, he still sees opportunity.

“SAB 121,” as it is known, precludes traditional finance firms from offering custody services for crypto due to arguably, onerous reserve requirements courtesy of the SEC.

Put another way, the bulletin effectively prevents regulated banks from touching digital assets and, consequently, prevents digital assets from being under the U.S. financial system umbrella.

In May, Rep. Flood’s  joint resolution [H.J.R.109] passed both Houses of Congress with bipartisan support in a watershed moment for digital assets only to be vetoed by President Biden. Earlier this month, the veto override vote in the House failed…

So now what?

Yesterday, blockchain tipsheet caught up with Congressman Flood on SAB 121:

    • Initial reaction to the veto
    • Efforts to increase Dem support, post-veto
    • Next steps for rescinding SAB 121
    • On the SEC working on one-off basis with TradFi companies
    • House Appropriations line item on SAB 121
    • State of bipartisanship in the 118th Congress
    • The next Congress and digital assets legislation
    • Flyover Fintech event on October 21

The interview has been lightly edited for clarity.

blockchain tipsheet: What was your reaction to the veto of House Joint Resolution 109 rescinding the SEC’s SAB 121?

Rep. Mike Flood: Well, I wasn’t surprised.

During the debate on the Floor, before we actually voted for it [on May 9], the White House put out a preemptive notice that they intended to veto it and Ranking Member Maxine Waters (D, CA) was waving that around during the debate and trying to remind our Members that the President intended to veto it.

Nevertheless, it got 21 votes from Democrats in the House and 12 votes in the Senate – one of them being Majority Leader [Chuck] Schumer (D, NY).

I think the support from Congressman Wiley Nickel (D, NC) and others shows that this does not need to be a partisan issue, and it clearly is NOT partisan.

There should be a path forward where Republicans and Democrats could agree on – not just repealing this – broader regulatory certainty for digital assets.

I think that during that debate, one of the criticisms that the Ranking Member had was, “Well, maybe this isn’t the right way to take down SAB 121 using the Congressional Review Act.”

Okay. Then, why isn’t my other bill moving? -I had a bill to change it in the Federal code and repeal it…

But, I wasn’t surprised with the veto. Continue reading “Rep. Mike Flood Reflects On Efforts To Rescind The SEC’s SAB 121, Next Steps”

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Rep. Auchincloss On CBDCs, Support For Digital Assets Legislation

Rep. Jake Auchincloss

As Members of Congress’ interest in blockchain has grown in recent years, Rep. Jake Auchincloss (D), who represents the Fourth District of Massachusetts, has not *just* been along for the ride.

As a freshman Congressman in the 117th Congress, Rep. Auchincloss was a member of the House Financial Services (HFS) Committee and was exposed to, and engaged in, the intricacies of securities matters including the emerging digital assets industry.

In the 118th Congress, though no longer on HFS, his interest in technology and blockchain has been further piqued by service on the Transportation & Infrastructure Committee and the Select Committee on Strategic Competition Between the United States and China.

Today, he remains impactful on financial matters with his “Power of the Mint Act” [H.R.3402], which is co-sponsored by Rep. French Hill (R, AR), and seeks to assert Congressional power over any decision by the Federal Reserve to roll out a Central Bank Digital Currency (CBDC).

Rep. Auchincloss also recently voted in favor of the Financial Innovation and Technology Act for the 21st Century [H.R.4763] (FIT 21) and the House resolution to rescind the Securities and Exchange Commission’s (SEC) Staff Accounting Bulletin 121 (SAB 121) [H.J.R.109].

Yesterday, blockchain tipsheet spoke with Rep. Auchincloss about a range of digital asset issues including:

    • Support for FIT 21 and the SAB 121 resolution
    • Blockchain use cases
    • The Democratic caucus and digital assets
    • Power of the Mint Act and CBDCs
    • Wholesale versus retail CBDC
    • Stablecoins and the US Dollar
    • Congressional staff
    • The next Congress…

(This transcript has been edited for clarity.)

blockchain tipsheet: You voted for the SAB 121 resolution as well as FIT 21. Why did you support each of these bills?

Rep. Jake Auchincloss: I voted for SAB 121 because the Government Accountability Office found – and this is a nonpartisan, independent body – that the SEC ran afoul of Administrative Law in issuing what really is a rule under the banner of guidance, and thereby circumventing rule-making.

It’s important that Congress uphold the rule of law and that we uphold Administrative Law process. To me, I am policy agnostic, but this was a process fidelity issue.

And, on FIT 21? Continue reading “Rep. Auchincloss On CBDCs, Support For Digital Assets Legislation”

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Rep. French Hill Talks Digital Assets Legislative Momentum

Rep. French Hill

What a week for lawmakers on House Financial Services (HFS) including Rep. French Hill (R, AR), who is Vice Chair of HFS and Chair of its Subcommittee on Digital Assets, Financial Technology and Inclusion.

One of the HFS Committee’s two signature bills, the Financial Innovation and Technology for the 21st Century [H.R.4763] – or “FIT 21” – passed with a resounding bipartisan majority on the House Floor, 279-136.

At nearly the same moment as FIT 21’s passage, there was more good news after a bipartisan Congressional letter co-signed by Rep. Hill and others on Wednesday urged the Securities and Exchange Commission (SEC) to approve applications for spot Ether Exchange-Traded Product (ETP) applications.

Late Thursday, the SEC did just that by approving the first leg of the ETH ETP process.

And then there’s stablecoins [H.R.4766] and the SAB 121 [H.J.R.109] resolution – both with more favorable momentum than ever before.

The digital assets policy “tide” has clearly shifted in Washington D.C. Yet, Rep. Hill, who has represented central Arkansas’ 2nd congressional district since 2015, remains vigilant and attuned to future legislative opportunity including plans for a series of upcoming Digital Assets Subcommittee hearings on tokenization and decentralized finance (DeFi) in addition to HFS closing the deal on stablecoin legislation.

On Friday, blockchain tipsheet spoke with Rep. Hill across a range of digital asset topics including:

    • SEC and Ether Exchange-Traded Products
    • Digital assets and The Hill
    • Bipartisanship
    • Tipping point versus turning point
    • Legislative momentum
    • The education process
    • Managing jurisdictions
    • Next for the Digital Assets Subcommittee

(This transcript has been edited for clarity.)

blockhain tipsheet: Congressman, you co-signed a letter on Wednesday, that urged the SEC to approve an ETP. Yesterday – a day later – the SEC responded with approval on the first leg of that process. Is this what you wanted?

Rep. French Hill:  I was pleased to see the Commission follow through and approve “Step 1” of the idea that they’re going to extend their exchange-traded product category to Ether.

In my view, the long process they took in the Bitcoin ETP approval – and the Federal court’s intervention on that topic – caused this to flow more smoothly and they met their deadline. So, I was pleased to see it. Continue reading “Rep. French Hill Talks Digital Assets Legislative Momentum”

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Rep. Mike Flood Readies For The Long Haul With Digital Assets Legislation

Rep. Mike Flood

When the House Financial Services’ (HFS) Committee abbreviated markup concluded last Thursday, Rep. Mike Flood (R, NE) likely felt some well-deserved relief.

With momentum building over the past few months, the Securities and Exchange Commission’s (SEC) controversial Staff Accounting Bulletin (SAB 121) had become an increasing part of Flood’s legislative remit with his sponsorship of a standalone bill [H.R.5741] and co-sponsorship of a joint resolution [H.J.R.109] intended to rescind the controversial rulemaking-but-not-a-rule by the securities regulator.

At its heart, SAB 121 effectively prevents big banks – well-regulated banks – from taking custody of crypto assets which arguably inhibits the growth of digital assets within the U.S. financial system.

By a vote of 31-19, the joint resolution passed out of the HFS committee markup with bipartisan support and now heads to the House floor for a vote. No doubt, the SAB 121 saga is far from over.  In addition to the House vote, the Senate will need to move on the resolution as will the President… and time is ticking on the 118th Congress.

Nevertheless, it’s a positive development in the eyes of Rep. Flood who is relishing his first session of Congress as part of the majority on the HFS Committee and its Subcommittee on Digital Assets, Financial Technology and Inclusion.

Flood had been a strong advocate for the creation of digital assets legislation. Overall in the 118th Congress,  he has also been a robust legislator sponsoring 12 bills and co-sponsoring 175 bills according to Congress.gov.

On Friday, spinning out of last week’s HFS markup, Rep. Flood discussed SAB 121, digital assets, the SEC and his experience in Congress with blockchain tipsheet.

Topics included:

    • Perspective and the Banking Crisis
    • Reviewing SAB 121, Next Steps
    • Uniform Treatment of Custodial Assets Act
    • Members Need Education… Now
    • Congressional Staff
    • CFPB’s Wallet Proposal
    • Looking Ahead & 119th Congress

The interview has been lightly edited for clarity. Continue reading “Rep. Mike Flood Readies For The Long Haul With Digital Assets Legislation”

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Interview: Rep. Ritchie Torres Making Progressive Case For Digital Assets

Rep. Ritchie Torres

As a member of the House Financial Services (HFS) Committee and proud representative of his district in the Bronx, New York, Rep. Ritchie Torres (D, NY) has been at the front of lines of the evolution of the U.S. financial system in the 118th Congress.

And though he’s a staunch supporter of the Democratic Party, Torres has been unafraid to break with his Caucus’ leadership when he has believed it’s in the best interests of his constituency. Digital assets has been one such beneficiary of his independence.

Congressman Torres voted in support of the stablecoin and digital asset market structure bills at markup hearings last July, co-sponsored the bipartisan Keep Innovation In America Act of 2023 [H.R.1414], signed on to support numerous bipartisan Congressional letters on digital assets and consistently delivered engaged, tough questioning of U.S. government regulators at public hearings.

After the conclusion of an HFS Subcommittee for Digital Assets, Financial Technology and Inclusion hearing on illicit finance earlier today, Rep. Torres discussed his views on digital assets and Congress with blockchain tipsheet.

Topics included:

    • The progressive case for digital assets
    • Where “Big Tech” fits in
    • Stablecoin legislation
    • The SEC and crypto
    • Congressional generational divide
    • On the industry
    • SAB 121

The interview has been lightly edited for clarity. Continue reading “Interview: Rep. Ritchie Torres Making Progressive Case For Digital Assets”

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Rep. Larry Bucshon On Congress And Ensuring U.S. Leadership On-Chain

Rep. Larry Bucshon

When the 118th Congress started last year, blockchain-related legislation was focused on digital assets and financial industry applications – i.e. crypto. Yet, slowly but surely, legislation related to the blockchain emerged on the House Energy and Commerce (E&C) Committee with special focus on how the technology can provide unique opportunity to American business and its supply chains.

Among those leading the E&C charge has been Rep. Larry Bucshon (R, IN), who recently announced his retirement after 14 years in Congress.

Congressman Bucshon introduced a supply chain resiliency bill at a September Energy & Commerce hearing which would establish the “National Blockchain Promotion and Deployment Program” at the Department of Commerce.

Post-hearing, two bipartisan bills came about with co-sponsor Rep. Lisa Blunt Rochester (D, DE):

    • “Deploying American Blockchains Act [H.R. 6572]” – “To direct the Secretary of Commerce to take actions necessary and appropriate to promote the competitiveness of the United States related to the deployment, use, application, and competitiveness of blockchain technology or other distributed ledger technology, and for other purposes.”
    • “Promoting Resilient Supply Chains Act [H.R. 6571]” – “To establish a critical supply chain resiliency and crisis response program in the Department of Commerce, and to secure American leadership in deploying emerging technologies, and for other purposes.”

The bills passed unanimously passed during a December E&C markup which sent them to the House floor for a still-pending vote.

Rep. Bucshon spoke with blockchain tipsheet today at the Capitol to discuss his views on blockchain technology, legislation and Congress.

Topics included:

    • Congress today
    • E&C technology policy
    • Two blockchain bills
    • House floor vote possibilities
    • Bipartisanship and divided government
    • Educating Members
    • Importance of Congressional staff
    • The role of Industry
    • Senate and making law

The interview has been lightly edited for clarity. Continue reading “Rep. Larry Bucshon On Congress And Ensuring U.S. Leadership On-Chain”

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Interview: Rep. Wiley Nickel Sees ‘Big Impact’ Ahead With Digital Assets

Rep. Wiley Nickel

With his first year in Congress complete and his last year ahead (he’s running for Senate in 2026), Rep. Wiley Nickel (D, NC) has been a consistent supporter of potentially transformative bills from the House Financial Services (HFS) Committee, which he joined at the beginning of the 118th Congress.

The digital asset market structure bill known as “Financial Innovation and Technology for the 21st Century Act” [H.R. 4763], included early support from Rep. Nickel where he eventually voted with five Democrats and all of the Committee’s Republicans to support the bill during a July HFS markup.

In another July HFS markup, Rep. Nickel was one of 5 Democrats – along with  the majority Republicans – who supported a long-awaited stablecoin bill, “Clarity for Payment Stablecoins Act of 2023” [H.R. 4766]. Both bills now move to the House Floor for a vote.

Rep. Nickel spoke with blockchain tipsheet in Washington D.C. this week to discuss Congress and digital assets including:

    • Learnings during his first year
    • The Bitcoin ETFs and regulators
    • Partisanship and the Democratic Party
    • Anti-Money Laundering
    • His constituency and digital assets
    • Stablecoin and market structure bills
    • The importance of Congressional staff
    • 2026 Senate run, his platform and digital assets

The interview has been lightly edited for clarity.

blockchain tipsheet: What’s surprised you the most in your first year of Congress?

Rep. Wiley Nickel: It’s been a great first year in Congress. The surprise for me has just been how much I like the people I serve with – the absolutely amazing people that you don’t really hear about. They’re not the people on the far left or the far right. They are people who care about their country, they are working hard – in my experience – behind the scenes and it’s very different from what the public sees. I think there are a lot of people that that are very serious about trying to work together. And I think the Financial Services Committee is one of the few committees that’s really going to move some good bipartisan bills through the House and signed into law. Continue reading “Interview: Rep. Wiley Nickel Sees ‘Big Impact’ Ahead With Digital Assets”

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Interview: Senator Cynthia Lummis Is Optimistic About Digital Assets In Congress This Year

Sen. Cynthia Lummis

As Congress picks up speed this month in spite of election year hurdles, Senator Cynthia Lummis (R, WY) has been busy thinking about – and working on – next steps for digital assets legislation among the many initiatives and responsibilities she and her team oversee.

Her “Lummis-Gillibrand Responsible Financial Innovation Act” [S.2281] has been been a key, proposed framework for digital assets in the Senate and Congress.

The bill, first introduced in the 117th Congress, and updated for the 118th, is a comprehensive, digital assets regulatory framework co-sponsored by New York Democratic Senator Kirsten Gillibrand. “Lummis-Gillibrand,” as it is known, appears to have weathered the buffeting winds of FTX, a bear market, Congressional skepticism and the seemingly recalcitrant Securities and Exchange Commission (SEC) – to name a few.

Senator Lummis sat down with blockchain tipsheet at the Capitol today to discuss all things digital assets and Congress including:

    • The Bitcoin ETF watershed moment
    • State of digital assets legislation today
    • Lummis-Gillibrand and funding regulation with “wash sale” rule
    • Stablecoin bill update
    • Reflections on the NDAA digital assets AML amendment
    • Binance, Tether and illicit finance
    • SAB 121 and next steps

The interview has been lightly edited for clarity.

blockchain tipsheet: Is the approval of Bitcoin spot market ETF’s a watershed moment for digital assets?

Senator Cynthia Lummis: I think it’s important because it gives consumers who are not ready to dive in with both feet – who are not ready to self-custody – exposure to Bitcoin through an exchange-traded fund, which is a very well known vehicle to get exposure to valuable assets.

It’s important for consumer assurance that this is an asset worth holding in a diverse asset allocation and that now they can have exposure to it without having to be an expert. [It also] helps integrate Bitcoin into the traditional asset management world. So, I do think it’s a watershed moment. Continue reading “Interview: Senator Cynthia Lummis Is Optimistic About Digital Assets In Congress This Year”