Former Representative Patrick McHenry, who championed cryptocurrency legislation during his time in Congress, is forecasting a “wicked hot summer for legislating” as lawmakers revisit bills he helped craft last year. The prediction came during a discussion hosted by Georgetown University’s Psaros Center for Financial Markets and Policy, where McHenry emphasized the urgency for the crypto industry to seize what he sees as an ideal legislative moment.
McHenry, now serving as a senior advisor to venture capital firm a16z, pointed to the current leadership in Congress as creating a favorable environment for establishing comprehensive cryptocurrency regulations. Specifically, he highlighted Senator Tim Scott, the South Carolina chairman of the Senate Banking Committee, and Representative French Hill, the Arkansas Republican who leads the House Financial Services Committee, as key figures in this opportunity.
“And I think you should take it,” McHenry urged the crypto industry, arguing that properly crafted legislation would provide better protection than temporary regulatory measures. “Let’s ward against bad regulators taking these seats that could try to kill digital innovation.“
Stablecoin Legislation and Industry Tensions
A significant portion of the upcoming legislative battle centers on stablecoin regulation. McHenry, who played a direct role in drafting last year’s stablecoin legislation that has reemerged with new versions in both chambers of Congress, warned of a “major brewing battle” between major players in the space.
The conflict primarily involves U.S.-based stablecoin issuer Circle (USDC) and global market leader Tether (USDT), with disagreements focusing on how non-U.S. issuers would be treated under new regulations. According to McHenry, both companies are actively lobbying on Capitol Hill to protect their interests in anticipation of upcoming legislation.
“You shouldn’t blow up an international product that desires to be dollar-denominated; I don’t think that’s a rational outcome,” McHenry stated, expressing confidence that lawmakers would find a “reasonable landing spot” for Tether that allows it to continue serving U.S. investors.
From “Science to Art”
McHenry acknowledged that transforming complex technical policies into workable legislation represents a transition from “science to art” as lawmakers navigate the intricacies of cryptocurrency regulation. His comments suggest that while the fundamental framework is taking shape, the final details will require significant negotiation and compromise.
The former congressman’s current legislative focus builds upon his previous work on the Financial Innovation and Technology for the 21st Century Act (FIT21), which has become the foundation for this year’s congressional efforts on cryptocurrency market structure.
Regulatory Implementation Challenges
Also participating in the discussion was Rostin Behnam, former chair of the Commodity Futures Trading Commission under the previous administration. Behnam offered a sobering perspective on the timeline for actual implementation even after legislation passes.
“It’s going to take a while,” Behnam cautioned, noting that after Congress passes laws, regulatory agencies must write rules to implement them—a process that “often can take over a year, even at the quickest clip.”
Behnam also highlighted the ongoing challenge of regulating an industry that continues to evolve regardless of the regulatory environment. “You can’t stop the industry from doing what it’s doing, whether it’s trading the tokens or developing protocols and whatnot, and that’s been going on for years,” he observed.
Industry at a Crossroads
Current cryptocurrency market conditions reflect the uncertainty surrounding regulatory developments. As of today, Bitcoin trades at approximately $94,824, with Ethereum at $1,805. Most major cryptocurrencies are showing slight downward movement over the past 24 hours.
The Georgetown discussion underscores the critical juncture facing cryptocurrency regulation in the United States. With bipartisan figures like McHenry and Behnam emphasizing both opportunity and caution, the coming months could prove decisive for establishing the regulatory framework that will shape the industry’s future in America.
For the cryptocurrency sector, which has operated largely without comprehensive federal regulation thus far, the summer of 2025 may indeed prove to be “wicked hot” as Congress tackles the complex task of creating legislation for this rapidly evolving financial technology.
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