I have to admit I love reading all the stories and posts about Crypto vs Traditional Finance and their influence on Capitol Hill. Since I work on Capitol Hill and I interact with some of the very people that some of these rumors involve I have to say I get a heck of a laugh out of some of them. Yesterday when I got to the office I turned on CNBC instead of talking about the stock market or even the crypto market a spirited debate was going on about cryptos influence and what its influence was and what it meant. 

The two hosts were going back and forth with comments and quips but there was nothing of any substance being said. After a few minutes though they finally brought their guest on and it was someone who is in the weeds right now engaging this exact issue, New Jersey Representative Josh Gottheimer.

Who is Representative Josh Gottheimer?

Rep. Gottheimer is a New Jersey Democratic representative who is a member of the House Financial Services Committee. He is also one of the more moderate members of the Democratic party who hired his legislative director from the office of then Rep. Ron DeSantis who is now the governor of Florida. As such he has been known to buck his party in regards to different things and while some in the Democratic party have been against crypto every step of the way Rep. Gottheimer has been just the opposite meeting with groups and organizations to learn and find a common ground. 

So What Has He Done?

Earlier this year he revealed an early draft of legislation aimed at doing one very key thing for regulators. Placing definitions around stablecoins. While it might sound easy these definitions are extremely hard to get a consensus on and as an example did you know the U.S. military is still struggling to define what Extremism means?! In his legislation, he made it a point to make sure it would not in any way shape, or form stifle innovation while Congress wades through crypto and the blockchain to create new rules and regulations. 

This legislation would not address everything and it only addresses part of the stablecoin market as well. The big thing that it does is it would create something called a qualified stablecoin which would be backed by actual US Dollars in an FDIC-insured account. It also would make sure that stablecoins like these are not defined as a security or derivative something that currently is the case. Unlike most draft legislation that is released this one has been applauded by crypto and blockchain groups including the Blockchain Association, Circle's Chief Strategy Officer and Head of Global Policy, and the Chief Policy Officer at the Digital Chamber of Commerce. 

What is Going on with the Crypto Industry and Capitol Hill?!

This election cycle crypto has begun to leverage not only the capital it has generated but also the public perception. There are currently two political action committees (also called PACs) that crypto investors have established and seeded with tens of millions of dollars. One of them, Protect Our Future, has raised more than $14 million alone. While not the biggest numbers in the world these PACs are the ones that we are 100% sure about and are not "dark money" PACs.

The creation and utilization of these mean one big important thing for the industry. It has arrived and even more so it is willing to help fund people who run on pro-crypto platforms. While Democrats have been seeking much more oversite over the industry members who embrace crypto have received not only endorsements but also money. 

What brought this to the forefront seems to have been how in March Rep. Ritchie Torres (D-NY) wrote a very very pro-crypto op-ed. Since then he has had two fundraising events organized by crypto-heavy investors. This is big because this is how the "big boys" play in these races. In close races, it can come down to who raised the most money to put their face in enough places to win the race. Something like being pro-crypto and having the backing and support of the industry could separate and catapult a nominee to an election win. 

Final Thoughts

Representative Gottheimer in his interview with CNBC was huge in letting both the hosts and those watching know that crypto businesses and organizations who are calling are not calling to say no to regulation. Rather they are calling asking for regulation so they have the guardrails in place to build a product that not only benefits users but is also legal! For a long time now we have heard that the crypto industry is calling and saying do not regulate us we do not want that. Rep. Gottheimer though was able to show us that this is not true and that general basic regulation are wanted in order to allow these projects to really kick it into high gear and attacked large sums of investments. No one wants to pour money into something that might end up being illegal and the crypto industry has realized this and is trying to work with Congress to get it corrected as soon as possible. 

Please know I am not a financial advisor I am just someone who picked up on a trend and wanted to express it! Makes sure you always do your own research and never invest money you cannot afford to lose! If you enjoyed this article and would like to further support me below are a couple of referral links that if you used when signing up I would appreciate it! Also, follow me on Twitter @Cje95_

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