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The Keep Innovation in America Act
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The Keep Innovation in America Act

Plus 13 Dems send a letter to Speaker Pelosi, House Agriculture's draft "Digital Commodity Exchange Act of 2021," last week's JEC hearing, and more.

HODLpac
Nov 22, 2021
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The Keep Innovation in America Act
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gm,

50 weeks to go to the general election.

Join us tomorrow night on Twitter at 3:00 PST / 6:00 EST as we host Matthew Diemer, candidate for Congress from Ohio’s new 13th district.

Twitter avatar for @HODLpacHODLpac @HODLpac
Join us tomorrow at 6pm ET for a conversation with @MatthewDiemer, candidate for Congress from Ohio’s 13th district. https://t.co/TrEi3C3ZuH

November 22nd 2021

3 Retweets10 Likes

Though the district was recently redrawn, Matthew is running for the open seat created when Rep. Anthony Gonzalez announced he won’t be running for re-election. Rep. Gonzalez has been an ally when it comes to improving public policy to encourage crypto innovation in the United States (read more below), so supporting Matthew’s campaign could help us replace one pro-crypto Representative from Ohio with another.

Donate to Matthew Diemer


As always, three things you can do to get involved with HODLpac:

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The Week in Crypto Policy

The “Keep Innovation in America” Act

Following the two Senate bills we highlighted in last week’s newsletter, another bill emerged from the House of Representatives on Thursday that seeks to fix both the faulty broker definition and the unconstitutional Section 6050I reporting requirement.

Twitter avatar for @jerrybritoJerry Brito @jerrybrito
GM! Some good news: A comprehensive bipartisan bill has just been introduced in the House to fix EVERYTHING wrong with the infrastructure bill's crypto tax provision–including the unconstitutional §6050I individual reporting mandate.
congress.gov/bill/117th-con…

November 18th 2021

799 Retweets2,773 Likes

H.R. 6006, aka the Keep Innovation in America Act, is currently co-sponsored by 7 Republicans and 4 Democrats, including Rep. Patrick McHenry (R-NC-), Rep. Tim Ryan (D-OH-13), Rep. Tom Emmer (R-MN-), Rep. Kevin Brady (R-TX-), Rep. Ro Khanna (D-CA-17), Rep. Darren Soto (D-FL-9), Rep. Anthony Gonzales (R-OH-16), Rep. Warren Davidson (R-OH-8), Rep. Ted Budd (R-NC-13) and Rep. Mike Bost (R-IL-12).

Check out the press release from the House Financial Services GOP office for statements from most of the co-sponsors:

Read the Press Release

House Dems Letter to Pelosi

Shortly after we published last week’s newsletter, thirteen Democrats in the House of Representatives shared a letter they sent to House Speaker Nancy Pelosi.

Twitter avatar for @RepDarrenSotoRep. Darren Soto @RepDarrenSoto
We stand united to ensure more tax certainty for #cryptocurrency and work with the IRS on key reforms. Together, we will continue to support innovation and protect consumers.
Image
Image

November 16th 2021

327 Retweets1,431 Likes

The letter highlights problems with the infrastructure bill’s changes to the “broker” definition that we’ve discussed in this newsletter.

Co-signers of this letter include Rep. Darren Soto (D-FL-9), Rep. Ro Khanna (D-CA-17), Rep. Stacey Plaskett (D-USVI), Rep. Eric Swalwell (D-CA-15), Rep. Tim Ryan (D-OH-13), Rep. Susan Wild (D-PA-7), Rep. Marc Veasey (D-TX-33), Rep. Jake Auchincloss (D-MA-4), Rep. Al Lawson (D-FL-5), and Rep. Charlie Crist (D-FL-13).

JEC Crypto Hearing

On Wednesday of last week, the Joint Economic Committee held a hearing entitled “Demystifying Crypto: Digital Assets and the Role of Government.”

Witnesses included (click the name to read their statements):

  • Alexis Goldstein, Director of Financial Policy at the Open Markets Institute.

  • Tim Massad, Research Fellow at Harvard Kennedy School and Adjunct Professor of Law at Georgetown Law Center.

  • Mr. Kevin Werbach, Professor of Legal Studies & Business Ethics and Director of the Blockchain and Digital Asset Project at The Wharton School at The University of Pennsylvania.

  • Peter Van Valkenburgh, Director of Research at Coin Center

Watch Video of the Hearing

Below are two good threads unpacking the proceedings:

Twitter avatar for @kwerbKevin Werbach @kwerb
Some thoughts on yesterday's Joint Economic Committee hearing on Demystifying Crypto. 🧵 The video stream and written statements from all the witnesses (which are much more detailed than what we read at the hearing) are available here:
jec.senate.gov/public/index.c…Demystifying Crypto: Digital Assets and the Role of Government - Demystifying Crypto: Digital Assets and the Role of Government - United St…jec.senate.gov

November 18th 2021

21 Retweets66 Likes
Twitter avatar for @RepTomEmmerTom Emmer @RepTomEmmer
.@valkenburgh’s testimony today before @JECRepublicans underscored that crypto is just like every innovation that made America great: a product of our pioneers' ingenuity.

November 17th 2021

131 Retweets539 Likes

House Agriculture Committee Crypto Regulatory Blueprint

The House Financial Services Committee does most of the heavy lifting when it comes to crypto-related policy in Congress but it is far from the only committee with relevant jurisdiction. If you’re an OG HODLpac newsletter reader, you know this.

Another committee to keep an eye on is the House Agriculture Committee, which has jurisdiction over, among other things, the Commodities Futures Trading Commission.

On Tuesday of last week, Republican Leader of the House Agriculture Committee, Rep. Glenn Thompson (R-PA-15), released a discussion draft of the Digital Commodity Exchange Act of 2021. The Agriculture Committee press release described the draft bill as “a blueprint for the regulation of digital commodity markets.” Rep. Thompson also published an open letter seeking "feedback and discussion with stakeholders, regulators, and other interested parties in the coming weeks.”

What do you think about the Digital Commodity Exchange Act of 2021?

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Crypto in Congress - November 22, 2021

By Ron Hammond

It's official, on December 8th several crypto CEOs will testify in front of the House Financial Services Committee. This is a big hearing and it will cover a variety of topics! A quick thread of the kind of questions we are getting here in DC...

As a caveat, these points of concern are coming from both sides of the aisle. Some are based on a misunderstanding of the issue while others are fact-based. This is meant to give a baseline understanding of what we are experiencing on the ground in DC, not say who is right/wrong.

First is stablecoins. This has been the dominant crypto policy issue for the past few months. The PWG report highlighted many concerns regarding stablecoin issuers. The Hill is currently grappling with the following: are they bank deposits or not and will they cause a bank run.

Second is DeFi. Notice many detractors of DeFi always lead with "so-called decentralized" finance. The sector itself is very complex and everyone on the Hill is trying to get a better understanding of the issue. Detractors though are raising the alarm in DC that DeFi is a concern.

Third is Twitter and unfortunately, this is rising in prominence in our meetings. DC has learned that the best way to understand crypto is to go to Twitter. However, many things C-suite execs and influencers say on Twitter are viewed as vitriolic or condescending to DC audiences 

Fourth is climate. This is a major policy priority for the Administration but both sides of the aisle have expressed concern about the stories in the media they read about Bitcoin's climate impact. Headlines matter and even those in DC new to crypto are keenly aware of this issue.

Fifth is use cases. Simply saying "this helps the unbanked" without providing real, fully functional examples does more harm than good. A recent trend though is policymakers asking how this helps their constituents rather than other countries. Focus your arguments on helping USA.

Sixth is gas fees. This issue is growing as detractors point to the high fluctuation in prices. Typically these arguments are focused on the lack of transparency to consumers and the ability of wealthier individuals to "skip the line." DC is still learning but critics are alarmed.

Don't get me wrong, there are a lot of champions for crypto in DC, but if we are hoping to appeal to a broader audience then it is important to see what detractors and those on the fence are asking. This hearing will be a full committee hearing so expect a wide range of expertise.


🐦 Tweets

Twitter avatar for @jchervinskyJake Chervinsky @jchervinsky
1/ 🚨 A full update on the infrastructure bill: President Biden signed the bill into law on Monday. The crypto tax provisions are officially set to take effect on January 1, 2024 (for FY2023 reporting). Several members of Congress have already proposed new bills to fix this 👇

November 18th 2021

302 Retweets1,009 Likes
Twitter avatar for @abesutherlandAbraham Sutherland @abesutherland
6050I crime story @ConstitutionDAO - A bunch of pals go to an auction, chip in some cash to buy an antique because it’s fun and it’s a free country. But, the law since 1984: if auctioneer receives $10,001+ cash he must report ALL their SSNs within 15 days… 1/4

November 19th 2021

11 Retweets45 Likes
Twitter avatar for @vtg2Victoria Guida @vtg2
Treasury’s Liang on DeFi: “Talking to these firms & the possibility of products they can offer on this open blockchain network is pretty amazing. But it’s not illegal to operate outside the regulatory system unless you’re breaking rules.”

Victoria Guida @vtg2

Cryptocurrencies, climate change, coronavirus, cyber attacks — Nellie Liang is staring down a lot of risks brought to you by the letter C. My Q&A with her. https://t.co/TDhqXZWOTp

November 18th 2021

7 Retweets31 Likes
Twitter avatar for @JenniferismsJennifer Schonberger @Jenniferisms
BREAKING: Fed Gov Waller says he disagrees w the administration’s rec's that only banks should be allowed to issue stablecoins. Says he not opposed to stablecoin isuers being regulated as banks, but that banks shouldn’t be the only entities allowed to issue stablecoins.

November 17th 2021

70 Retweets398 Likes

📚 Good Reads

  • “What happens to policy proposals, anyways?,” Gyges Lydias, Medium

  • “Crypto companies, on defense in Washington, scramble to assemble a lobbying machine,” Tory Newmyer, Washington Post

    • 🚨 HODLpac shoutout alert 🚨

  • “The Fake Environmentalist Attack on Bitcoin,” Nick Gillespie and Regan Taylor, Reason

🎙️ Listen/Watch

  • “Bitcoin VS Big Banks - Morgan Harper US Senate Candidate,” Dennis Porter, Smart People Shit

  • “The Fight for the Future of Money with Crypto Dad Chris Giancarlo,” David Hoffman and Ryan Sean Adams, Bankless

  • “New Technology and Old Rules: Constructing a Crypto Regulatory Framework,” Chris Brummer, Katherine Cooper, Melissa Netram, Jennifer J. Schulp and Sarah Wynn, Cato Institute Center for Monetary and Financial Alternatives

What’d we miss? Join our Discord and help curate this newsletter!


Disclaimer: HODLpac is FEC-registered hybrid political action committee and is not legally affiliated with any party, party committee, candidate or candidate committee.

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