Last week, the US House of Representatives finally selected a Senate speaker to put an end to the hardships of four days and 15 online voting, which made many people wonder whether the political and political dilemma is a new situation in the United States, and if so, what the adverse effects will be.

For example, will Poroshenko Aaron Cormack's compromise to secure the election of Senate speaker eventually make it more and more difficult to reach a consensus on any kind of law? this makes it impossible for the United States to raise the debt ceiling and provide financial support for government departments later this year? Not everyone is optimistic.

U.S. Congressman Herbert Torres, a Democrat from New York, told the Cointelegraph earlier in a series of online ballots with colleagues that the House of Representatives would become increasingly ungovernable in 2023, which ended in the middle of the night. "the 117th Congress is one of the most pragmatic law conferences to date," Torres stressed. "but the 118th Congress is undoubtedly one of the most pragmatic law conferences."

In the recent turmoil in the world's largest economy, it is worth asking what all this means for digital money and blockchain applications. Does this mean that Congress cannot be expected to enact all valuable cryptographic laws in 2023?

There is a bipartisan alliance.

Not necessarily. Torres, a member of the House Financial Information Services Federation, who introduced the data encryption law in December in response to the collapse of FTX, said that at least on the face of it, the House of Representatives has a bipartisan coalition to take advantage of the data encryption law.

After all, recently, Democrats in both the House and Senate and Poroshenko have intermittently urged password reform and innovation. In fact, Analytical Enterprise Chainanalysis recently elaborated on about 20 decrees facing Congress, which will seriously affect the long-term stability of digital money. The House Financial Information Services Federation alone has an incoming president, Poroshenko Patrick McBurt, and Democrats who apply data encryption, such as Fernando Torres and Maxine Waters.

But at a deeper level, Torres sees a cross-development trend that is likely to disrupt the law: the ideological far right may block all password advocacy, which is also a matter of principle-- they resist.FullRegulation-and the far left probably wants to keep digital currencies unregulated, in order to make them legal, and then kill them. In this group, it seems that password law will be tantamount to embracing new industries.

Torres believes that legal action is particularly important. "Congress has a responsibility to intervene," she told the Cointelegraph, adding that because of the uncertainty of the digital currency, it is impossible to continue to be unregulated. He said that the diligence of Gamo Gensler, the current chairman of the SEC, in placing digital currency long-term stable money under federal supervision based solely on regulatory actions had not been successful. It is clear that, especially in the case of the FTX fiasco, there must be a longer-term legal solution.

Torres does not believe that recent events will delay or destroy the original FTX fraud hearing system set by the House of Representatives. First of all, it is easier to hold a hearing system than according to the law, he stressed.

"We are very cheerful."

But perhaps Fernando Torres is too pessimistic about more legal problems. The Association for Independent Innovation of data encryption, which creates a federal regulatory framework and gives picture quality to every investor, is still under illusions. Brett Quick, who is in charge of government affairs of the federation, told the Cointelegraph: "everyone is optimistic that, with full consideration of the broad support for due process, a comprehensive law may be submitted to the President of the United States in this Congress."

Naturally, there will be some tests. The essence of the majority of the Democratic Party of the United States and the continuous rules of the key members of the House of Representatives are not easy to make things easier and easier. Random key members of the House of Representatives delayed the campaign for Senate speaker by a week. But "passwords are likely to be one of the few industries that receive sufficient bipartisan political encouragement, so promoting the law in Congress is an effective expectation," Quaker added.

Like Torres and Quick, Walters Flint-Clark Flynt-Barr, Chainanalysis's most senior current policy adviser, praised the bipartisan collaboration that has taken place over the past year around the password. She cited the Waters-McHenry Investment Stability Act of the House of Representatives and the bipartisan Lummis-Gillibrand Financial Reform Act signed by the House of Lords. Flynt-Barr said in an interview with Cointelegraph that he expects this type of collaboration to increase, especially in areas such as the recent collapse of FTX:

"dilemmas and scandals-- and today's fraud-- usually give more impetus to regulatory reform, otherwise it might not be a top priority."

However, we should proceed with caution. It is difficult to implement the law in any way. Above all, Congress needs to take the time to learn more about digital currencies and blockchains. Otherwise, Flint-Eric warns: "existing passive policies that do not take into account areas such as differences can have a devastating impact and lead this indigenous innovation abroad."

Is it better not to take action?

According to this idea, can American suspension or stable password laws in 2023 really be that bad? Sometimes it's better to stand still than to act in a hurry, isn't it?

"The US password market is in a desperate situation without regulating picture quality, "warned Jenny Friedman, Ripple's current policy director. "the regulatory dilemma at this stage is encouraging customers to switch to offshore account service platforms that will not be regulated by the US." She told Cointelegraph that if the United States does nothing, it will also lose its competitive edge in password innovation and development and design.

Abigail Cave, press secretary of US Congressman Cynthia Loomis, who co-sponsored the responsible financial reform law, told the Cointelegraph: "it is impossible to sneak around again." Asked about the recent crisis in the House of Representatives, she added:

Congressman Lummis believes that this will not affect the prospects for the development of digital money law in the 118th Congress. Over the past year, congressional legislators from both parties have developed a clear enthusiasm for digital currency regulation.

The member felt that it was necessary to enact new laws to protect customers and allow continuous independent innovation in the field of passwords. His proposed law aims to "bring digital money into the regulatory category".

But others have shown that regulation in a non-legal manner can also be effective. Flint-Eric told the Cointelegraph: "the government can use its rulemaking power to publish new rules, and in the absence of any law, organizations can publish new implementation opinions." In fact, she stressed that the recent unified regulatory agenda and regulatory plan of the Ban Ki-moon administration reported on the actions that government agencies intend to publish in the short or long term, including several types of standards that "will seriously affect passwords".

What is the best thing Congress can do this year?

Under the current circumstances, will the results of the 118th Congress on passwords be satisfactory?

Torres insists on adopting a security system to ensure the true security of user assets stored in cryptocurrency exchanges. For example, it has a law that forbids securities companies from lending, leveraging or mixing assets without customer approval. The second requires cryptocurrency exchanges to report their reserves to the SEC on time-not only property, but also debt. FTX reported $900m in assets some time before its bankruptcy, but it is said to have $9 billion in debt-a warning sign if you understand that. In Fernando Torres's view, FTX's defeat is preventable and laws and regulations are needed to ensure that it will not happen again.

For Flint-Eric, a proactive result is undoubtedly "the formulation of current legal policies based on objective facts, which are technology-oriented rather than counter-revolutionary, reflecting the unique aspects of the field." it's not easy and there's no need to increase it. "

She went on to say that the United States has been a leader in financial regulation for decades. Flint-Eric stressed that the Financial Crime Inspection Internet, a subsidiary of the U.S. Treasury, was one of the first institutions in the world to support password-related compliance laws and regulations. as early as 2013, "at that time, the value of Bitcoin was about $130, and Etay Fong had not even been established." It is hoped that the United States will continue to take the lead in password regulation and do so in a form that encourages the field to take responsibility for improvement in the United States, which will be particularly important for our economy and national security.

Ripple's Friedman is also hopeful that 2023 will be "a year across the current policy of basic common sense passwords", adding:

"We have leaders on both sides of Congress who also support legal solutions, and the conversations around passwords are much more complicated than they were two years ago."