McHenry: Democrats Won't Push an Anti-Crypto Bill Through the House

Patrick McHenry, the former chairman of the House Financial Services Committee, doesn't buy the idea that a Democratic sweep means a crypto crackdown. Asked on Nov. 9 about Sen. Elizabeth Warren's fresh push against the industry, he said he doesn't see a path to pass an anti-crypto bill through the House.

Democrats won both chambers in the Nov. 3 midterms and take over in January, with Warren expected to chair the Senate Banking Committee. McHenry still called the incoming Congress more pro-crypto in both parties than the ones six and eight years ago. Warren's progressive politics, he said, carry less weight now than when Joe Biden entered office with Democrats running the House and Senate. Some progressive policies still land, but anti-crypto ones don't hit as hard, he argued.

His advice to the industry: stay popular. McHenry urged crypto to protect its political support and keep lawmakers on its side, a message he has pushed before while discussing how the sector should prepare for Democratic control and the stalled CLARITY Act.

On the regulatory front, McHenry drew a sharp line between two agency chiefs. CFTC Chair Michael Selig has no authority over spot crypto markets, where tokens actually change hands, and would need Congress to hand him that power by legislation. SEC Chair Paul Atkins, he said, already has wide latitude to shape how crypto trades.

McHenry also floated a scenario for the future: if a president staffed the regulators with leaders who weren't explicitly pro-crypto, Congress could push back — provided enough lawmakers back the industry.