Crypto must solidify political influence to avoid regulatory rollback: McHenry

Former House Financial Services Committee Chair Patrick McHenry has stated that the crypto industry must solidify its political influence to ensure protection against potential regulatory reversals. McHenry emphasized the importance of congressional support as a safeguard against a return to stringent regulations reminiscent of the Gensler era. This statement comes amid shifting political dynamics, with Democrats gaining control of both chambers of Congress, potentially affecting the oversight of cryptocurrency policy in the U.S. The CLARITY Act’s failure to pass in the Senate earlier this year has left comprehensive crypto market-structure legislation in limbo. This legislative standstill creates uncertainty in the regulatory landscape, potentially influencing market participants’ perceptions of future crypto regulations. McHenry’s comments are seen as a call to action for the crypto industry to engage more actively in the political process to secure favorable regulatory outcomes. Market participants appear to view McHenry’s comments as potentially supportive of a favorable regulatory environment for cryptocurrencies, which could positively influence Bitcoin’s future price project...