In the mid-1990s, it became clear that the Internet was going to be a very big deal. There was only one problem: the law.
At the time, the telecommunications industry was regulated under the Communications Act of 1934. (If this sounds familiar, remember that crypto is currently regulated under the Securities Act of 1933!)
The problem with this ancient legislation is that it gave local telephone services a monopoly: you had only one choice for a phone company, usually terrible.
Worse, the regulations around broadcast and radio meant you also had limited TV and radio stations, which were also terrible.
Worst of all, no one knew how the Internet would play into these archaic laws. Would people have to buy broadcast licenses to set up a website?
As the Web began to grow, lawmakers from both the left and the right realized the telco industry needed a reboot. Modernizing the Communications Act of 1934 would not only allow the Internet to flourish, but it would create enormous economic growth for the U.S.
That’s how we eventually got the Telecommunications Act of 1996, with overwhelming bipartisan support.
It was signed into law by Democratic President Bill Clinton, and was championed by Republican leaders such as House Speaker Newt Gingrich.
Leaders from both parties worked together to shape the legislation. Democratic Senator Ernest Hollings and Republican Senator Larry Pressler collaborated in the Senate, while Democratic Representative Edward Markey and Republican Representative Tom Bliley played significant roles in the House.
The final version passed the House of Representatives by a vote of 414-16, and the Senate by a vote of 91-5. In other words, practically everyone supported the bill.
It was a huge hit. It deregulated phone and cable companies, which blew up the telephone monopolies and allowed for new competition. It ensured universal service at reasonable rates for all Americans. And it allowed the Internet to blossom. All these ideas worked.
Today, we live in an Internet economy. Which could not have happened without the Telecommunications Act of 1996. Which only happened through bipartisan cooperation.
Crypto Already Has Bipartisan Support
To date, one of the most encouraging things about crypto legislation is that Republicans and Democrats have worked on it together. Let’s review:
- The Financial Innovation and Technology for the 21st Century Act: Introduced by Patrick McHenry (R-NC) and Glenn Thompson (R-PA), FIT21 establishes clear jurisdiction between the CFTC and the SEC on who regulates crypto assets. It passed the House with bipartisan support, including 71 Democrats.
- The Responsible Financial Innovation Act: Introduced by Cynthia Lummis (R-WY) and Kirsten Gillibrand (D-NY) in 2022, this bill creates a regulatory framework for digital assets, classifying most crypto as commodities overseen by the CFTC. This bill has also gained support from both sides of the aisle.
- The Digital Commodity Exchange Act: Introduced by Glenn Thompson (R-PA) and Ro Khanna (D-CA), this bill defines digital commodities, and puts crypto exchanges under the CFTC. It has received support from both Republicans and Democrats for providing regulatory clarity.
- The Cryptocurrency Tax Fairness Act: Introduced by David Schweikert (R-AZ) and Suzan DelBene (D-WA), this bill makes small cryptocurrency transactions non-taxable. It has bipartisan support, due to its potential for simplifying tax reporting.
- The Token Taxonomy Act: Reintroduced by Warren Davidson (R-OH) and Darren Soto (D-FL), this bill excludes cryptocurrencies from being classified as securities. It has gained bipartisan support for providing regulatory clarity.
- The Blockchain Regulatory Certainty Act: Introduced by Tom Emmer (R-MN) and Darren Soto (D-FL), this bill provides a safe harbor for blockchain developers so they won’t live in fear of being sued by the SEC. It has bipartisan support for encouraging technology innovation.
While none of these bills has yet become law, they all have bipartisan support, because that’s how you get stuff done.
Bipartisan support is not a pipe dream: it’s literally how the system works. If we want to move crypto forward, it can’t be a Republican issue or a Democratic issue. It’s got to be all of us, working together.
Crypto is Too Big for One Party
Why should crypto belong to one party?
The worst-case scenario is that crypto becomes one of these hot-button issues, like gun control or abortion, where both sides are ready to fight to the death.
The best-case scenario is that we keep crypto from becoming too closely identified with either party. Ideally, crypto will be embraced by both, and the different parties will bring different perspectives.
The Telecommunications Act of 1996, for example, took years to become law. Among the debates:
- Republicans wanted more deregulation; Democrats wanted more consumer protections.
- Democrats wanted more universal coverage; Republicans wanted fewer regulatory requirements.
- Republicans wanted to allow media companies to consolidate; Democrats were concerned about too much concentration of media power.
This is the kind of conflict we want around crypto: thoughtful dialogue and debate.
Listening to the political rhetoric this election cycle, both sides position it as a life-or-death battle for “the soul of our country” or “the future of our democracy.”
Just remember, this is an act. No matter who gets elected into office, both sides will have to work with the other to get anything done. That is the process of government.
So better crypto laws, when they come, will be passed with bipartisan support. Both sides will have to make some compromises to get what they want.
Crypto is ultimately about remaking the global financial system, which is a topic that should interest everyone. It’s about creating millions of new jobs. It’s about constructing a new platform for business and commerce. It’s about building a new economy – just like the Internet in 1996.
These are issues that deeply affect all of us, regardless of our political leanings. Smart politicians will see that it’s not a question of if the U.S. embraces crypto, but how the U.S. embraces crypto.
Crypto is too big for any one party.
Cross the F*ing Aisle
In an election year, it’s rare for politicians to run on the promise that they’ll work with the other side.
Yet, that’s the way the system is built.
I’m personally watching this year for politicians who actually talk about working together to do the work of governing. Which, you know, is the job we’re hiring you to do.
What’s more, I’m demanding it.
I propose we all start asking our political candidates: How will you work across the aisle, to do the job we’re hiring you to do?
Better crypto laws – like the Telco Act of 1996 – are only going to happen with bipartisan support. So let’s demand of all our politicians: IF YOU WANT MY VOTE, CROSS THE F*ING AISLE.
