Why Many Democrats, Including the White House, Have Come Around on Crypto - Ep. 652

May 28, 2024

Sheila Warren, CEO of the Crypto Council for Innovation, dives into the recent political changes regarding cryptocurrency legislation. She discusses how the overturning of SAB 121 and the FIT21 bill have shifted the White House's stance on crypto. Sheila highlights persuasive arguments that changed Democratic views and reflects on the lasting effects of the SBF and FTX scandals. With pride, she explains the implications of the FIT21 bill and the SEC's surprising approval of spot ETH ETFs, marking a pivotal moment for bipartisan collaboration in crypto legislation.

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INSIGHT

White House Veto Threat

The White House's veto threat on overturning SAB 121 was unexpected, given its seemingly low importance.
This highlighted a potential disconnect between the White House's stance and the broader view on crypto.

INSIGHT

Shifting Political Landscape

Trump's pro-crypto stance contrasted sharply with the Biden administration's veto threat, potentially influencing the narrative.
The White House's shift may have been influenced by the realization that Democratic support for crypto was stronger than perceived.

ANECDOTE

Bipartisan Support Revealed

Sheila Warren believes the White House's change of heart stemmed from recognizing bipartisan support for crypto.
The SAB 121 votes revealed that Democrats were not uniformly against crypto, contrary to some perceptions.

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Sheila Warren, CEO of the Crypto Council for Innovation, joins Unchained to explore the dramatic shift by Democrats in the last few weeks on crypto. She explains why she believes the overturning of SAB 121 and the House vote for the FIT21 bill were both instrumental to the White House's changing view on crypto and may have played a role in the SEC’s surprising approval of spot ETH ETFs.

Having worked for years on passing crypto legislation and as a lifelong Democrat, Sheila describes what kinds of arguments were persuasive to Democratic members of Congress, addresses some criticisms of the FIT21 bill, and gives her perspective on the debate about single-issue voters.

Show highlights:

The overall attitude toward crypto in Washington going into the House vote on SAB 121 on May 8
The bipartisan votes in the House and Senate to overturn SAB 121
Why, by the time of the Senate vote on FIT21, the White House had had a change of heart about crypto
Why, after the Senate vote to repeal SAB 121, the SEC approved the spot ETH ETFs
Why Sheila is so proud of the passage in the House of the FIT21 bill
How Sheila and CCI approached their discussions with Democrats and what arguments they found effective
Whether the industry has survived the negative image of SBF and FTX
The sea change in the White House between the SAB 121 vote and the FIT21 vote
A high-level description of the FIT21 bill
What kind of authority the bill would give the CFTC over crypto
What the implications of the bill are for launching tokens
FIT21’s approach to regulating DeFi and how the FIT21 bill is "kicking the can" on this topic
The overall political and legislation landscape and the next likely steps for crypto
Whether the ETF approval changes anything about the SEC’s investigation into Ethereum
What Sheila thinks about the 'crypto single-issue voter’ debate

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Guest:

Sheila Warren, CEO of the Crypto Council for Innovation
Previous appearance on Unchained: Did FTX Ruin Crypto’s Image on Capitol Hill? Two DC Insiders Discuss