Launchy Regulatory Roundup #14 - Republicans Secure House Majority, Paving Way for Crypto Legislation in 2025

Polymarket CEO Raid | $232M Crypto Scam

Marco Manoppo & Muhammad Reynaldi Ariananda Arkiang
November 17, 2024

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Good Morning.

Welcome to our 14th edition of the regulatory roundup. If you know anybody who would benefit from this content, please help us spread the word!

The recent political shift in the US could be a game changer for the crypto industry. With Republicans taking control of the House, the push for clearer crypto regulations is gaining momentum.

In Today's Edition:

Headline: Republicans Secure House Majority 🗽
Global Legal Roundup: Polymarket CEO raid, $232M crypto scam 🌐
Case Study: 2024 Elections: A Turning Point for the Crypto Industry ⏭️

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HEADLINE

Republicans Secure House Majority, Paving Way for Crypto Legislation in 2025

Img: Wikipedia

State of play: The Republican Party has secured a majority in the House of Representatives, solidifying a political trifecta alongside Donald Trump’s reelection and control of the Senate.

This outcome boosts prospects for comprehensive cryptocurrency legislation as the new Congress convenes.
Over the past year, the Republican-led House passed several crypto-focused bills.
The bills include the Financial Innovation and Technology for the 21st Century Act (FIT21) and a resolution to overturn the SEC’s controversial SAB 121 policy.
While FIT21 stalled in the Senate and SAB 121 was vetoed by outgoing President Joe Biden, Republican dominance is expected to drive progress.
With the departure of Patrick McHenry, a key proponent of crypto legislation, Republicans will appoint new leadership for the Financial Services Committee.
Notable candidates include Reps. Andy Barr, Frank Lucas, French Hill, and Bill Huizenga.
The committee is expected to revisit stablecoin regulations, an area where McHenry collaborated with Democrat Maxine Waters in prior years.
Fairshake PACs played a significant role in Republican victories, backing over 50 successful candidates, including Bernie Moreno in Ohio's Senate race.

What’s Next: As the House prepares for a GOP-led agenda, crypto policy emerges as a key area of focus for lawmakers aiming to solidify the US as a leader in financial innovation.

Why it Matters: A Republican trifecta could accelerate long-overdue cryptocurrency legislation, providing regulatory clarity and fostering innovation in the US.

Our Take: The next two years offer a crucial chance to shape US crypto policy. With GOP leadership, swift progress is likely, but bipartisan collaboration is essential to ensure stability and long-term success in the industry.

GLOBAL LEGAL ROUNDUP

North America:

🇺🇲 FTX sues Binance, former CEO CZ for $1.8B.
🇺🇲 Trump mulls tapping crypto-friendly CFTC chair.
🇺🇲 FBI raids home of Polymarket CEO Shayne Coplan.
🇺🇲 NY Supreme Court allows Greenidge to keep mining.
🇺🇲 18 US states file lawsuit against SEC and Gary Gensler.
🇺🇲 NY prosecutor suggests office will scale back crypto cases.
🇺🇲 Dogecoin lawsuit against Elon Musk dropped amid market surge.
🇺🇲 Elizabeth Warren rises into role where crypto sector won't shake her.
🇺🇲 Pennsylvania lawmaker introduces bill for ‘strategic Bitcoin reserve.’
🇺🇲 Ripple Labs and CEO come under fire amid rumors of a Trump meeting.
🇺🇲 Joe Lubin says SEC crypto cases will be ‘dismissed or settled’ under Trump.

Europe:

🇪🇺 EU regulator sets restrictive measure guidelines for crypto providers

APAC:

🇰🇷 South Korea probes Upbit for 600K KYC violations.
🇰🇷 South Korean Police arrest 215 in suspected $232M crypto scam.
🇭🇰 Hong Kong warns against crypto firms misrepresenting as ‘banks.’
🇦🇺 Coinbase launches Stand With Crypto advocacy group in Australia.

World:

🌐 Central Bank Group BIS names Hernández de Cos as GM.

CASE STUDY

2024 Elections: A Turning Point for the Crypto Industry

Credits to Christopher Perkins and Coindesk for the original opinion.

State of play: The 2024 elections brought a major shift for the cryptocurrency industry with the election of a pro-crypto president and a Congress boasting 287 pro-crypto members. This change is expected to unlock growth and mainstream adoption across the sector:

DeFi could benefit significantly, with the potential to replace intermediaries and expand access to financial services through smart contracts.
Utility tokens, previously overshadowed by meme coins under the old regulatory regime, may see renewed focus.
Integrating crypto with AI could bring breakthroughs in transparency and scalability, while crypto-based fixed-income markets are likely to grow as financial institutions embrace the space.
DePIN is set to drive innovation in industries like telecommunications and mapping.

Our Take: With regulatory uncertainty fading, the crypto industry is well-positioned to attract institutional investors and foster entrepreneurial innovation. This election outcome could begin a transformative period for the US as a leader in the crypto world.

Take a peek at our referral reward at the bottom of this issue. Share this newsletter and receive our comprehensive database of crypto regulations around the world👇

NOTEWORTHY READS & MEME

Fox Business’s discussion on the lawsuit 18 states against SEC and Gensler.
Egan, Mosier, Teyema & Sheridan’s opinion on blockchains, digital assets & national security.
Brian Quintenz’s read on web3 opportunity, new legislation absence and government in the US.

Shhhhhh. Just go home.
— Autism Capital 🧩 (@AutismCapital)
8:11 PM • Nov 14, 2024

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Disclaimer: All the information presented in this publication and its affiliates is strictly for educational purposes only. It should not be construed or taken as financial, legal, investment, or any other form of advice.