Politics thread

The dust needs to clear on both the midterms and FTX fiasco, but we have enough information to make some calls. Relying on the best info I have - may not be perfect

First: looks like Dems will most likely retain control of the Senate and Republicans will flip the House. This is very important. A Republican House gains subpoena power. Previously they were pretty toothless

On the dreaded DCCPA: hearing it's dead. Sen Boozeman said they will continue to pursue it, but virtually no chance House counterparts in Ag cmte (soon to be led by GT Thompson (R)) will advance it. FTX lobbyists evaporated. No pull in DC any more

Importantly, Rep Emmer (cryptos #1 friend in the House) is campaigning for Whip. If he gets this, expect good things for the pro-crypto agenda. Emmer has been pushing hard on Gensler.

On the all important House financial services cmte, Rep McHenry will take over from Maxine Walters. McHenry is pro crypto, has been very critical of Gensler.

Importantly, a Republican house has subpoena power and could use that to investigate Gensler's FTX links. I'm hearing there was lots of chicanery around secret SEC side deals with FTX, allowing them to move onshore and gain amnesty

fortune.com/crypto/2022/11/11/sbfs-disgrace-could-make-things-awkward-for-gary-gensler-and-the-democr...

On the legislative front, there's other, decent legislation that a Republican House could propose. #1 the bipartisan digital commodities act, gives CFTC authority over spot markets

republicans-agriculture.house.gov/news/documentsingle.aspx?DocumentID=7284

#2 the bipartisan securities clarity act. Does what it says on the tin: updates and clarifies Howey to reflect new realities around cryptoassets

emmer.house.gov/2021/7/emmer-introduces-legislation-to-provide-certainty-for-digital-assets-under-sec...

#3 McHenry's partisan clarity for digital tokens act. This is a legislative version of Hester Peirce's popular safe harbor idea.

republicans-financialservices.house.gov/news/documentsingle.aspx?DocumentID=408154

#4 McHenry's bipartisan keep innovation in america act. Fixes the very bad 'broker' provision in the infra investment and jobs act. Necessary fix

republicans-financialservices.house.gov/uploadedfiles/keep_innovation_in_america_act_1-pager.pdf

A Republican House could propose other putative legislation on stopping CBDCs and creating a safe harbor for crypto taxes too. Overall 2023 could be the first year we actually get meaningful pro-crypto legislation. Green shoots