Curtis warns bipartisan crypto support remains fragile

During the Permissionless III conference, U.S. Congressman John Curtis from Utah, alongside Senator Mike Lee, addressed the delicate state of bipartisan support for cryptocurrency regulation.

Curtis acknowledged that while 71 Democrats had joined Republicans in backing the repeal of the SEC’s Staff Accounting Bulletin-121 (SAB-121), which restricted banks from holding crypto, this cooperation is still "fragile."

Curtis emphasised the importance of maintaining bipartisan cooperation, stating, “If it becomes a partisan issue, we will have a very, very difficult time.”

He encouraged industry professionals to educate lawmakers on the complexities of digital assets to prevent misunderstandings.

Senator Mike Lee also weighed in, warning against three potential threats to the crypto industry: a U.S. central bank digital currency (CBDC), federal overregulation, and inconsistent state-level policies.

He described state-by-state regulation as "death by 50 cuts" and argued that digital assets represent a new class, not fitting traditional categories like securities or commodities.

Lee also suggested that capital gains taxes should not apply to cryptocurrency transfers, stressing the need for balanced regulation to encourage innovation in the sector.