McHenry Predicts ‘Wicked Hot Summer’ for Crypto Policy in Washington
Former U.S. Representative Patrick McHenry, a key figure in crypto policy, predicted a “wicked hot summer” for congressional efforts to regulate digital assets.
Speaking on April 29, 2025, during a recent interview hosted by Georgetown University’s Psaros Center for Financial Markets and Policy, McHenry pointed to contentious debates over stablecoin and market structure legislation.
His remarks signal a turning point for the crypto industry, which is crying out for regulatory clarity with growing desperation.
McHenry: No Excuses Left for Crypto Inaction
McHenry, who previously chaired the House Financial Services Committee, explained the need for fast progress on crypto legislation.
The Financial Innovation and Technology for the 21st Century Act (FIT21), which he sponsored in 2024, remains a top priority. The FIT21 bill was passed by the House on a bipartisan basis and seeks to clarify jurisdictional boundaries between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) for digital assets.
It’s the foundation of ongoing market structure discussions in 2025.
Stablecoin legislation is also gaining attention, with new bills under review in both the House and Senate targeting assets like Circle’s USDC and Tether’s USDT.
McHenry noted that Congress has “no excuse not to act this year,” as lawmakers, returning from a two-week recess, face demands to deliver. With sources reporting that President Trump is pushing for progress by August, adding to the urgency.
Can Tether Find a Home in U.S. Crypto Rules?
One of the focal points of focus is regulation of stablecoin issuers, particularly non-U.S. firms like Tether, which holds the largest stablecoin market share globally.
McHenry saw a “big brewing fight” between Circle, a U.S.-based issuer, and Tether, with both actively lobbying to influence Capitol Hill policy decisions. He expressed optimism for a “sensible landing place” for Tether, where it can accommodate itself within U.S. regulations without destabilizing its dollar-denominated product, which he stated would be an “irrational result.”
The dispute shows global challenges in balancing innovation with regulatory oversight. Stablecoins are critical for crypto market liquidity, but their governance raises concerns about financial stability and international compliance.
McHenry insisted that there must be balanced policies in order to preserve U.S. market competitiveness.
Crypto’s Future Relies on Congress’s Next Moves
The crypto industry is closely monitoring developments. However, McHenry cautioned that negotiations, moving from technical details to legislative drafting, are “more art than science,” potentially leading to delays.
Clear regulations could stabilize markets and boost investor confidence, but prolonged debates risk ongoing uncertainty.
With Trump’s reported August deadline approaching, the coming months are the most critical. Effective legislation could position the U.S. as a leader in digital finance, while a lack of action can hinder industry growth.
Stakeholders await Congress’s next moves in this complex regulatory landscape.
