Trump And Harris Amp Up Crypto Push But TD Cowen Is 'Pessimistic' About Digital Assets Legislation Progress This Year

Global investment bank TD Cowen has predicted a slowdown in the advancement of cryptocurrency legislation, even as presidential candidates Donald Trump and Kamala Harris try to court supporters of the asset class through their election campaigns.

What Happened: In a note released on Monday, TD Cowen stated that definitive legislation is unlikely to progress before the end of 2024, according to a report by The Block.

The prediction comes at a time when lawmakers are on a break until the post-election period, leaving a limited window for the passage of bills during the lame-duck session.

Jaret Seiberg from TD Cowen’s Washington Research Group expressed doubts about significant action during this session due to the limited timeframe and the need to pass other crucial legislation, including the National Defense Authorization Act (NDAA).

See Also: Edward Snowden Cautions Crypto Industry Not To Dilute Principles: ‘We Should Defy Bureaucracy’

Seiberg, however, suggested that a stablecoin bill, which has been under development since 2022 by House Financial Services Committee Chair Patrick McHenry (R-N.C.), and top Democrat of the committee, Rep. Maxine Waters (D-Calif.), could potentially pass under a “best case scenario”.

Why It Matters: Senate Majority Leader Chuck Schumer (D) underlined the significance of “sensible and long-lasting” regulation for the cryptocurrency industry earlier in August, vowing to get “something passed out of the Senate and into law” by the end of the year.

Earlier this year, the FIT21 legislation passed the House in a wave of bipartisan support, marking a pivotal step toward establishing a clear regulatory framework for digital assets in the U.S. Since then, the bill has stalled in the Senate.

As for the stablecoin bill, Walters stated last week the need to strike a “grand bargain” before the end of this year.

The anticipation around cryptocurrency legislation gathers steam as both Trump and Harris have indicated friendly stances toward the industry in their respective campaign trails.

Price Action: At the time of writing, Bitcoin was exchanging hands at $63,275.79, down 1.52% in the last 24 hours, according to data from Benzinga Pro. 

Photo by Igor Faun on Shutterstock

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.