Crypto, Pot Banking Would Gain Edge With Emmer as House Speaker

Crypto companies and marijuana advocates would gain powerful support if Republican Tom Emmer wins the House speakership.

Emmer, the Republican Party’s latest speaker nominee, has been one of the crypto industry’s most influential allies in the House, and he’s long backed marijuana banking — both areas with active legislative efforts in Congress.

House Republicans nominated Emmer Tuesday for the speaker’s post, the party’s third attempt to fill a leadership vacancy that has paralyzed lawmakers since GOP rebels ousted Kevin McCarthy from the job on Oct. 3. But he still faces strong opposition from allies of Donald Trump who may prevent him from getting enough votes to be elected by the full House.

Representative Tom Emmer, a Republican from Minnesota, speaks to members of the media following a House Republican caucus meeting.

Photographer: Al Drago/Bloomberg

Emmer, a senior member of the House Financial Services Committee, has consistently backed lighter-touch regulation of crypto and also proposed legislation to prevent creation of a retail digital dollar run by the Federal Reserve, which would likely reduce demand for industry-backed alternatives.

Emmer has argued that digital assets created by the central bank would be a threat to privacy.

He’s also warned excessive regulation could send crypto companies overseas. He’s assailed Securities and Exchange Commission Chair Gary Gensler for “relentless loyalty to the largest financial institutions at the clear expense of innovation, competition, and everyday Americans.”

Read More: GOP’s Third Speaker Nominee Struggles to Muster Republican Votes

Emmer also supports legal protection for banks that provide financial services to state-legalized marijuana businesses, which remain illegal under federal law. So-called “SAFE Banking” legislation has repeatedly passed the House. In 2021, a majority of Republicans including Emmer backed it.

A bipartisan Senate version has passed the Banking Committee, and Senate Majority Leader Chuck Schumer of New York has promised to make the measure a priority on the Senate floor.

Prospects for the legislation in the House have been uncertain since Speaker Kevin McCarthy was ousted. McCarthy previously voted for the marijuana banking bill, but the legislation continues to split Republicans.

To contact the reporter on this story:
Steven T. Dennis in Washington at sdennis17@bloomberg.net

To contact the editors responsible for this story:
Megan Scully at mscully32@bloomberg.net

Mike Dorning, Ben Bain

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