At present, half of the legislative branch of the U.S. federal government is effectively at a standstill following the vote to remove then-Speaker Kevin McCarthy. On October 3, the U.S. Congress made the unprecedented decision to declare the position of Speaker of the House of Representatives vacant, marking the first time in U.S. history that a government agency has been left without a leader. Representatives are set to return to Congress on October 11 to vote for a new speaker, with leading candidates reportedly being Republicans Jim Jordan and Steve Scalise.
However, cryptocurrency-friendly lawmaker Patrick McHenry, serving as speaker pro tempore in McCarthy's absence, is not expected to contend for the role. Former U.S. President Donald Trump has voiced support for Jordan, who has made false claims about the 2020 presidential election results. Scalise, who has described himself as having similarities to white supremacist David Duke but "no baggage," is also expected to receive substantial backing from many in the Republican Party.
The absence of a House speaker has effectively paralyzed the legislative branch, which has significant implications for cryptocurrency legislation. As Ron Hammond, director of government relations for the Blockchain Association, explained, the uncertainty surrounding the House speaker, Sam Bankman-Fried's ongoing criminal trial, and global events like the Israel-Hamas conflict could push cryptocurrency bills to November or December. Hammond also noted the challenge of advancing meaningful legislation during a presidential election year, as most focus is directed towards the elections.
Ji Kim, global policy lead at the Cryptocurrency Innovation Council, emphasized that cryptocurrencies are becoming a congressional priority. Legislation such as the 21st Century Financial Innovation and Technology Act and the Stablecoin Payments Clarity Act are likely to experience delays until a new speaker is elected. It remains uncertain how Republican lawmakers intend to prevent a recurrence of the circumstances that led to McCarthy's election as speaker in January, a process that took 15 rounds of voting and halted all legislation.
Both Jordan and Scalise have not made their positions on cryptocurrencies explicitly known, which introduces an element of uncertainty to the crypto space. The cryptocurrency-focused bill passed by the House Financial Services Committee in July is expected to be voted on by the full House in the upcoming congressional session. However, the delays in confirming a new speaker and the possibility of a government shutdown in November could pose challenges to legislative progress.
