Sen. J.D. Vance, a top contender to be former President Donald Trump’s running mate, is gearing up to enter Capitol Hill’s cryptocurrency scramble.
The Ohio Republican has started circulating draft legislation that would revamp how the U.S. regulates digital assets, according to five people granted anonymity to discuss private conversations with Vance’s staff. They said Vance, who serves on the Senate Banking Committee, hopes to improve on Republican-led legislation that the House passed last month with support from 71 Democrats.
Like the House bill, Vance’s plan would overhaul how the SEC and the CFTC police the crypto market, a big priority for crypto firms and investors unhappy with current Washington policy. People who have seen drafts of the Vance proposal said it would take a more industry-friendly approach than the House. But some crypto insiders are split on whether it makes sense to rally behind the Vance push after scoring major bipartisan support for the House legislation.
“Industry and the effort are much better served by preserving the bipartisan support that they’ve had … rather than moving to a more partisan product,” one lobbyist said.
Vance’s foray is the latest sign of the crypto world’s pull in Washington. Trump, with whom Vance is closely aligned, is courting the crypto faithful. Digital asset firms are gearing up to spend more than $160 million on the 2024 elections to boost allies and derail critics, including in Vance’s home state.
Vance, a venture capitalist and the author of “Hillbilly Elegy,” won his 2022 primary after running as a crypto ally. Last year, he introduced a bill that would shield banks from regulatory pressure to cut off crypto customers.
Vance is poised to enter a crowded space for crypto legislating. Senate Democrats appear increasingly open to pursuing policies like the House passed last month. Senate Agriculture Chair Debbie Stabenow (D-Mich.) as well as Sens. Cynthia Lummis (R-Wyo.) and Kirsten Gillibrand (D-N.Y.) are working on different proposals that would address similar regulatory concerns.
One lobbyist said Vance’s draft bill is more industry-friendly than the House-passed legislation because it would take a simpler approach to determining which digital assets the SEC would oversee versus the CFTC. Crypto firms argue that the SEC has claimed too much authority over the market.
“People don’t want to start over,” the lobbyist said. “But the Vance bill right now is much, much better.”
Vance’s spokesperson declined to comment.
A senior House Republican aide said GOP committee staff who worked on the House-passed bill are in talks with the staff of Vance and other senators about the House legislation. The aide, who was granted anonymity to discuss private conversations, said Vance’s staff expressed interest in drafting the senator’s own proposal the week after the House passed its bill.
Vance’s team wants to introduce his bill next month, the people briefed on the plan said. Trump is expected to announce his running mate around the time of the Republican National Convention, which begins July 15.
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