House’s McHenry Won’t Seek Reelection, Costing Crypto a Top Ally: Politico

Rep. Patrick McHenry (R-N.C.), arguably the crypto industry’s most important advocate in the U.S. Congress, has decided not to seek another term, he announced in a post on X on Tuesday.

As McHenry, the chairman of the House Financial Services Committee, continues to shepherd two significant pieces of digital assets legislation toward floor votes in the House of Representatives, his decision could set a clock on getting that task accomplished. Rep. French Hill (R-Ark.), the chair of that panel’s crypto-focused subcommittee, has already indicated that progress on the bills – one to regulate U.S. stablecoin issuers and one to establish rules for the wider crypto markets – will shift into the first months of next year.

“I will be retiring from Congress at the end of my current term,” McHenry said, confirming news first reported by Politico. “I believe there is a season for everything and – for me – this season has come to an end. I look forward to what comes next for my family and me.”

McHenry has been a central GOP negotiator for the stablecoin bill, which had nearly reached the finish line in talks with Rep. Maxine Waters (D-Calif.), the committee’s ranking Democrat. Waters has indicated she’s still willing to finish the work, and that legislation is widely seen as the most likely to win approval and potentially find success in the Democrat-controlled Senate.

The coming departure of the influential North Carolina lawmaker, famous for his bowties and known for a willingness to make pragmatic deals across the aisle, marks another twist in a political career that in recent weeks saw him suddenly ascend to the role as the House’s acting speaker after his colleagues fired Rep. Kevin McCarthy (R-Calif.). McHenry will have until January of 2025 to complete his term. When a lawmaker announces he’s leaving Congress, it can sometimes diminish his or her authority in negotiations.

“His tenure has focused on strengthening American leadership in the global financial system and ensuring that Americans have the opportunity to participate fully in the digital assets economy,” said Sheila Warren, CEO of the Crypto Council for Innovation, in a Tuesday statement. “We have appreciated McHenry’s approach to coalition building, willingness to work in a bipartisan nature and constructive engagement with industry. He will be noticeably missed in Congress.”

The industry still has a number of supporters among House Republicans, including Majority Whip Tom Emmer (R-Minn.) and Hill. But it also has powerful critics on the Senate side, such as Sen. Elizabeth Warren (D-Mass.) and Sen. Sherrod Brown (D-Ohio), the chairman of the Senate Banking Committee.

UPDATE (December 5, 2023, 17:37 UTC): Add’s McHenry’s announcement.

UPDATE (December 5, 2023, 17:42 UTC): Add’s a comment from the CEO of the Crypto Council for Innovation.