Kristin Smith on House to Vote on Crypto FIT21 Bill

Summary

In a discussion on 'Balance of Power,' Kristin Smith, CEO of the Blockchain Association, expresses optimism about the bipartisan support for the FIT 21 bill in the House, emphasizing Congress's role in policy-making over the SEC's authority. She highlights the crypto industry's growth and its engagement with lawmakers, noting the industry's collective voice and the grassroots support for fair regulation. Smith also addresses the SEC's potential approval of spot Bitcoin ETFs, which could be a significant step forward for the industry, and mentions the importance of the crypto community's involvement through organizations like Stand With Crypto.

Takeaways

• 🗳️ The FIT 21 bill is expected to have a strong bipartisan vote in the House, indicating a willingness to work together on legislation and a belief that Congress should make policy, not the SEC.
• 🏛 The Senate's stance on the bill is uncertain, and any changes to the bill will be made when it reaches the Senate.
• 🎉 Kristin Smith, CEO of the Blockchain Association, is positive about the bill's progress and sees it as a milestone for the crypto industry, even if it doesn't pass this year.
• 🔄 If the bill does not pass in the current congressional session, it would need to start over in January 2025, but the industry is prepared for this possibility.
• 📈 There is a growing understanding and engagement with crypto policy among lawmakers, with many candidates and policymakers becoming more educated on the subject.
• 👥 The crypto industry has become more engaged with lawmakers, and there is a grassroots swell of support for good policy.
• 👶 The crypto voter demographic tends to be younger, with a significant portion of voters aged 18-24 showing interest in cryptocurrency.
• 📊 Over 52 million Americans own crypto, and there is an organization called 'Stand with Crypto' for individuals to get involved and voice their opinions to their representatives.
• 💰 The crypto industry has raised around $100 million through Super PACs to advocate for fair regulation and to counteract what they perceive as a hostile stance by the SEC.
• 💼 The SEC's consideration of spot Bitcoin ETFs is seen as a significant moment for the industry, with the potential to undermine the argument that Ether is a security.
• 🚀 The bipartisan votes in the House and Senate, along with the potential approval of ETFs, indicate a big moment in crypto policy, showing that the industry is being taken more seriously.

Q & A

What is the significance of the FIT 21 bill for the crypto industry?

The FIT 21 bill is significant as it represents bipartisan support in the House for crypto legislation, indicating that Congress is willing to make policy in this area rather than leaving it to the SEC, which currently does not have the authority to do so.

Why is the bipartisan vote on the FIT 21 bill symbolic?

The bipartisan vote is symbolic because it demonstrates a willingness of both parties to collaborate on legislation related to cryptocurrencies, highlighting the importance of Congress in shaping policy in this area.

What is Kristin Smith's view on the SEC's current stance towards the crypto industry?

Kristin Smith believes that the SEC has been treating the crypto industry unfairly and hostilely, and that the industry is ready for sound regulation that balances consumer protection with fostering innovation.

What is the role of the Blockchain Association in the crypto policy landscape?

The Blockchain Association, led by Kristin Smith, serves as the collective voice of the crypto industry, focusing on engaging with lawmakers and advocating for fair and balanced regulation.

Why is the potential approval of spot Bitcoin ETFs by the SEC considered a big moment for the crypto industry?

The approval of spot Bitcoin ETFs by the SEC would be a significant step forward for the industry, as it would legitimize cryptocurrencies as an asset class and potentially lead to greater mainstream adoption and investment.

What does Kristin Smith believe the crypto industry's response to the SEC's stance has been?

According to Kristin Smith, the crypto industry has decided that enough is enough and is taking action to ensure a fair chance at obtaining balanced regulation, showing that the industry has matured and is ready to engage seriously with regulators.

What is the significance of the bipartisan votes in the House and Senate for the crypto industry?

The bipartisan votes indicate a growing recognition and seriousness towards crypto policy, suggesting that the industry's efforts to engage with lawmakers are being taken seriously and that there is a genuine interest in understanding and regulating the space.

What is the potential impact of the FIT 21 bill not passing in the current congressional session?

If the FIT 21 bill does not pass in the current session, the process would have to start over in January 2025. However, Kristin Smith views this as a positive, as it would give the next Congress, which is expected to be even more educated about crypto, the opportunity to craft policy.

Who is considered the 'crypto voter' according to the transcript?

The 'crypto voter' tends to be younger, with a recent survey from Texas showing that 1 in 5 voters are paying attention to cryptocurrency. Over 52 million Americans own crypto, indicating a growing and engaged demographic.

What is the role of the organization 'Stand with Crypto'?

Stand with Crypto is an organization that allows individuals to get involved in advocating for crypto policy. It provides tools for individuals to communicate with their congressmen and senators, helping to mobilize grassroots support for crypto-friendly policies.

How much money has been raised by the crypto industry through Super PACs according to the transcript?

The crypto industry has raised approximately $100 million through Super PACs to support their efforts in achieving fair and balanced regulation.

Outlines

00:00

🗳️ Bipartisan Support for Crypto Legislation

In this paragraph, Kristin Smith, CEO of the Blockchain Association, discusses the potential passage of the FIT 21 bill in the House. She emphasizes the bipartisan support for the bill, which is symbolic of both parties' willingness to collaborate on legislation related to cryptocurrency. Smith also addresses the role of the SEC and the White House's opposition, suggesting that the Senate's stance remains uncertain. She highlights the importance of the vote as a milestone for the crypto industry and expresses optimism for changes to the bill in the Senate. Smith also mentions the potential for a fresh start on the issue in January 2025, given the increased understanding and engagement of lawmakers with crypto policy.

05:03

💼 Crypto Industry's Maturity and Regulatory Engagement

This paragraph focuses on the crypto industry's efforts to engage with regulators and policymakers. Kristin Smith speaks about the industry's perception of unfair treatment by the SEC and the collective decision to push for balanced regulation that protects consumers while fostering innovation. She mentions the SEC's consideration of spot Bitcoin ETFs and the positive implications this could have for the industry, including undermining the argument that Ether is a security. Smith also discusses the significance of bipartisan votes in the House and Senate, the counting row repeal, and the overall progress in crypto policy. She attributes this progress to the hard work and engagement of individuals and organizations within the crypto space.

Keywords

💡Blockchain Association

The Blockchain Association is an organization representing the interests of the blockchain industry. In the script, Kristin Smith, the CEO of the Blockchain Association, discusses the role of the association in advocating for crypto legislation and policy, highlighting its importance in the crypto policy world.

💡FIT 21 Bill

The FIT 21 Bill is a piece of legislation being discussed in the script. It is symbolic of bipartisan cooperation and the intent for Congress to take the lead in making crypto-related policy. Kristin Smith mentions the FIT 21 Bill as a significant milestone in the crypto industry's engagement with lawmakers.

💡Bipartisan vote

A bipartisan vote refers to a situation where members of both major political parties support a piece of legislation. In the context of the video, a strong bipartisan vote in the House on the FIT 21 Bill is expected, indicating broad support for crypto legislation.

💡SEC

The SEC, or Securities and Exchange Commission, is a regulatory body in the United States that oversees securities laws. In the script, the SEC's stance against the crypto bill is mentioned, and Kristin Smith argues that the SEC does not have the authority to regulate crypto and that appropriate agencies should be given the power.

💡Crypto policy

Crypto policy refers to the regulations and guidelines governing the use and operation of cryptocurrencies. The video discusses the importance of educating policymakers about crypto policy and the need for a balanced approach that protects consumers while fostering innovation.

💡FTX collapse

The FTX collapse refers to the bankruptcy of FTX, a cryptocurrency exchange, which had significant implications for the crypto industry. The script mentions that the bill was originally crafted in the aftermath of the FTX collapse, indicating the impact of such events on legislation.

💡Crypto voter

A crypto voter is an individual who is interested in or affected by crypto policy and participates in the political process to influence decisions. Kristin Smith discusses the demographic of crypto voters, noting that they tend to be younger and are increasingly engaged in policy discussions.

💡STAND with CRYPTO

STAND with CRYPTO is an organization mentioned in the script that aims to involve individuals in the political process related to crypto policy. It provides tools for individuals to communicate with their representatives and senators about crypto issues.

💡Super PACs

Super PACs, or Political Action Committees, are organizations that raise and spend money to influence elections. In the context of the video, it is mentioned that a trio of Super PACs have raised around $100 million to support crypto-friendly candidates and policies.

💡Spot Bitcoin ETFs

Spot Bitcoin ETFs, or Exchange-Traded Funds, are investment funds that track the price of Bitcoin and are traded on stock exchanges. The script discusses the SEC's consideration of approving spot Bitcoin ETFs, which would be a significant development for the crypto industry and could impact the regulatory landscape.

💡Counting Row repeal

The Counting Row repeal is mentioned as a victory for the crypto industry in the script. While not explicitly defined in the transcript, it likely refers to a legislative or regulatory change that benefits the crypto industry, demonstrating progress in crypto policy.

Highlights

Kristin Smith, CEO of the Blockchain Association, discusses the potential of the FIT 21 bill passing in the House despite opposition from the SEC and the White House.

A strong bipartisan vote in the House for the FIT 21 bill is expected, indicating a willingness to work together on legislation and the belief that Congress should make policy, not the SEC.

The Blockchain Association is excited about the House vote, focusing on making changes to the bill in the Senate.

Policymaking in the crypto space takes time and education, with the full House of Representatives voting on a crypto bill being a significant milestone.

If the FIT 21 bill does not pass in the current congressional session, the process may need to start over in January 2025.

The crypto industry has matured, and there is a recognition of the need for sound regulation that balances consumer protection with fostering innovation.

There is a grassroots swell of support for good crypto policy, with many lawmakers and candidates being educated on the topic.

Over 52 million Americans own crypto, and there is an organization called 'Stand With Crypto' for individuals to get involved and voice their opinions to lawmakers.

The crypto industry has raised around $100 million on Super PAC sites to fight for fair regulation.

The SEC's approval of spot Bitcoin ETFs is a significant moment for the industry, with analysts at Bloomberg Intelligence raising their odds for ETF approval from 25% to 75%.

The potential approval of Bitcoin ETFs by the SEC could undermine the case that Ether is a security, according to Kristin Smith.

The bipartisan votes in the House and Senate on crypto policy and the counting row repeal are seen as victories for the crypto industry.

The crypto policy world is experiencing a big moment due to the hard work of many people, leading to the industry being taken more seriously.

The demographic of crypto voters tends to be younger, with a recent survey in Texas showing that 1 in 5 voters are watching cryptocurrency.

The SEC is likely considering the crypto industry's applications due to the growing recognition and the difficulty in maintaining a hostile stance.

Transcripts

FURTHER IS KRISTIN SMITH, CEO OF THE BLOCKCHAIN ASSOCIATION.

THANK YOU FOR JOINING US ON "BALANCE OF POWER."

TOM EMMER TOLD US THIS WEEK HE IS CONFIDENT IT DOES HAVE THE

VOTES TO PASS IN THE HOUSE TONIGHT BUT IF THE SEC IS OUT

AGAINST IT AND THE WHITE HOUSE IS OUT DOES IT STAND A REAL

CHANCE IN THE SENATE? KRISTIN: THE SENATE IS ANOTHER

CONVERSATION. THE ONE THING WE DO KNOW IS WE

ARE EXPECTING A STRONG BIPARTISAN VOTE IN THE HOUSE ON

THE FIT 21 BILL. THAT VOTE IS SYMBOLIC BECAUSE

IT SHOWS THAT BOTH PARTIES ARE WILLING TO COME TOGETHER TO

WORK ON THIS LEGISLATION BUT IT SHOWS THAT CONGRESS IS THE ONE

THAT SHOULD BE MAKING THE POLICY.

THE SEC DOES NOT HAVE THE AUTHORITY TODAY.

WE NEED TO GIVE THE APPROPRIATE AGENCIES -- WE ARE EXCITED BY

THIS VOTE. WE FOCUS ON THE VOTE TODAY AND

MAKING CHANGES TO THE BILL WHEN IT GETS OVER TO THE SENATE. JOE:

ARE YOU GOING TO THROW A PARTY FOR GARY GENSLER WHEN THIS

PASSES? KRISTIN: ABSOLUTELY.

I THINK POLICYMAKING TAKES TIME AND A LOT OF EDUCATION.

WE HAVE THE FULL HOUSE OF REPRESENTATIVES VOTING ON A

CRYPTO BILL, A HUGE MILESTONE. KAILEY:

IT IS SOMETHING THE OUTGOING FINANCIAL SERVICES CHAIR

PATRICK MCHENRY HAS BEEN PUSHING FOR BUT HE IS NOT

SEEKING REELECTION. IF IT CANNOT GET ACROSS THE

FINISH LINE IN THIS CONGRESSIONAL SESSION, IF IT

CANNOT BE TWEAKED ENOUGH IN THE SENATE TO PASS, DO WE HAVE TO

START FRESH ON THIS ISSUE IN JANUARY 2025? KRISTIN:

YES, WE WOULD HAVE TO START OVER BUT I THINK THAT IS A GOOD

THING. WHEN THIS BILL WAS ORIGINALLY

CRAFTED WE WERE COMING OFF THE FTX COLLAPSE AND THERE ARE SOME

COMPLICATED PIECES TO THIS BILL. AS WE LOOK TO NEXT CONGRESS WE

HAVE SO MANY MEMBERS OF CONGRESS TODAY THAT NO MORE

ABOUT THIS THAN TWO YEARS AGO WHEN THIS PROCESS STARTED.

WE HAVE A LOT OF CANDIDATES RUNNING IN THE HOUSE AND THE

SENATE AND EVEN THE WHITE HOUSE THAT ARE OPEN TOWARD CRYPTO

POLICY AND LEARNING ABOUT THE SPACE.

THE SET OF POLICY MAKERS WE WILL HAVE AN PLACE ON CAPITOL

HILL NEXT CONGRESS WILL BE EVEN MORE EDUCATED.

IT IS NOT THE END OF THE WORLD IF IT DOES NOT GET DONE THIS

YEAR BUT WE ARE EXCITED IT HAS GOTTEN TO THIS MILESTONE.

I THINK THIS SHOWS HOW MUCH ARE THE CRYPTO INDUSTRY HAS BECOME

WHEN IT COMES TO ENGAGING WITH LAWMAKERS AND THERE IS ALSO A

RECOGNITION THAT SOMEBODY PEOPLE ACROSS THE COUNTRY OWN

DIGITAL ASSETS, THEY CARE ABOUT THE POLICIES THAT IMPACT THEM

AND THERE IS A REAL GRASSROOTS SWELL OF SUPPORT FOR GETTING

GOOD POLICY DONE. JOE: THIS IS GENERATIONAL, I THINK

THAT IS YOUR POINT. YOU CALL YOURSELVES THE

COLLECTIVE VOICE OF THE CRYPTO INDUSTRY AT THE BLOCKCHAIN

INDUSTRY. WHO IS THE VOICE OF THE CRYPTO

VOTER? WHO IS THE CRYPTO VOTER? 18-24?

THESE CRYPTO BROS? KRISTIN: IT DOES TEND TO SKEW YOUNGER.

THERE WAS A HERON TEXAS PAUL RECENTLY THAT SHOWED 1 IN 5

VOTERS ARE WATCHING WHAT CRYPTOCURRENCY -- THAT WAS A

SURPRISING NUMBER. OVER 52 MILLION AMERICANS OWN

CRYPTO. THERE IS AN ORGANIZATION FOR

INDIVIDUALS WHO WANT TO GET INVOLVED CALLED STAND WITH

CRYPTO. YOU CAN SIGN UP AND BE A PART

OF IT. IT GIVES YOU TOOLS TO WEIGH IN

WITH YOUR CONGRESSMEN AND SENATORS.

THAT ORGANIZATION HAS BEEN ACTIVE IN HELPING INDIVIDUALS

MOBILIZE. JOE: THESE ARE VERY INVOLVED.

[LAUGHTER] KAILEY: THERE IS A LOT OF MONEY HERE,

AS WELL, INCLUDING A TRIO OF SUPER PACS. KRISTIN:

IT IS ABOUT $100 MILLION THAT HAS BEEN RAISED ON THE SUPER

PAC SITE. IF YOU LOOK AT THE CRYPTO

INDUSTRY POINT OF VIEW WE BELIEVE WE HAVE BEEN TREATED

INCREDIBLY UNFAIRLY AND HOSTILE BY THE SEC. THE INDUSTRY HAS

DECIDED ENOUGH IS ENOUGH. WE ARE GOING TO DO EVERYTHING

POSSIBLE TO GET A FAIR CHANCE AT GETTING SOUND REGULATION IN

PLACE THAT STRIKES A BALANCE BETWEEN PROTECTING CONSUMERS

AND FOSTERING INNOVATION HERE IN THE UNITED STATES.

WE ARE THAT THE BIG KIDS TABLE. WE HAVE GRADUATED, GROWN UP AND

WE ARE MATURE AND READY TO ENGAGE. KAILEY:

IT WAS A BIG MOMENT FOR THE INDUSTRY WHEN THE SEC APPROVED

SPOT BITCOIN ETF'S. OUR ANALYST AT BLOOMBERG

INTELLIGENCE RAISE THEIR ODDS FOR ETF APPROVAL FROM 25% TO

75%. WHAT DOES IT MEAN FOR THE INDUSTRY? KRISTIN:

IT IS EXCITING. THE FACT THAT THE SEC IS

CONSIDERING THIS -- MOST PEOPLE INCLUDING THE BLOOMBERG

ANALYSTS UNTIL THEY GOT THIS NEW INFORMATION THOUGHT THE

ODDS WERE VERY LOW THIS YEAR. I THINK THE SEC IS PROBABLY

READING THE TEA LEAVES. IT IS HARD FOR THEM TO CONTINUE

TO HAVE THIS HOSTILE TAKE TOWARD THE CRYPTO INDUSTRY AND

THEY REALLY CANNOT JUSTIFY NOT CONSIDERING THESE APPLICATIONS.

I DO NOT KNOW IF IT WILL BE THIS WEEK OR SOMETIME IN THE

NEXT COUPLE WEEKS OF THE PROCESS SEEMS TO BE UNDERWAY.

IT WILL BE VERY IMPORTANT BECAUSE IF THE SEC APPROVES

THESE, IT UNDERMINES THE CASE THEY ARE TRYING TO MAKE THAT

ETHER IS A SECURITY. WE THINK IT WILL BE VERY

IMPORTANT FOR THESE TO GET FORWARD.

WE ARE ENCOURAGED BY THAT NEWS. ALSO VERY ENCOURAGED BY THE

BIPARTISAN VOTES WE HAD IN THE HOUSE AND SENATE ON THIS.

THE COUNTING ROW REPEAL HAS BEEN ANOTHER BIG VICTORY.

WE ARE HAVING A BIG MOMENT IN CRYPTO POLICY WORLD.

IT IS BECAUSE OF ALL THE HARD WORK SO MANY PEOPLE HAVE BEEN

DOING THAT WE ARE FINALLY BEING TAKEN SERIOUSLY. JOE: