"If America fails to lead in Bitcoin and digital assets, it creates national security risks that adversaries will exploit."
Three House Republicans framed digital asset regulation as a matter of national security and economic competition during a panel at The Bitc...
The Iowa congresswoman shared her background working through medical school and highlighted Bitcoin’s potential to protect women experiencin...
The Signal
Three House Republicans framed digital asset regulation as a matter of national security and economic competition during a panel at The Bitcoin 2026 Conference in Las Vegas. Reps. Mariannette Miller-Meeks (R-Iowa), Zach Nunn (R-Iowa), and Mike Lawler (R-N.Y.) spoke on “The Bitcoin Bloc: A New Force in American Politics,” moderated by Coinbase Chief Policy Officer Faryar Shirzad. Miller-Meeks described Bitcoin as “financial democracy” and linked crypto adoption to America’s 250th anniversary, framing support as patriotic. She cited the Chinese Communist Party as a threat and characterized crypto policy as a national security issue.
lawmakers on stage at Bitcoin 2026
The Iowa congresswoman shared her background working through medical school and highlighted Bitcoin’s potential to protect women experiencing domestic abuse, citing Canada’s trucker protest as an example of government intervention in financial accounts. Miller-Meeks acknowledged that older Americans express concerns about digital asset safety.
“"If America fails to lead in Bitcoin and digital assets, it creates national security risks that adversaries will exploit."”
On-Chain Data
On-Chain Data
Geopolitical context: China continues to pursue leadership in digital assets, per Miller-Meeks, but the U.S. remains the best environment for innovation. China’s ban on crypto trading contrasts with its aggressive development of a digital yuan (CBDC) and blockchain infrastructure. Meanwhile, Chinese miners have relocated to the U.S., Kazakhstan, and other regions, but Beijing still exerts influence through investments in global crypto projects. This dual approach—suppressing domestic crypto while advancing state-controlled digital currency—creates a complex threat that U.S. lawmakers aim to counter with a clear regulatory framework.
Legislative progress: Nunn warned that losing the November midterm elections could reverse 18 months of legislative gains, allowing adversaries to gain ground while the U.S. falls behind. Key achievements include the House passage of the GENIUS Act for stablecoins and the repeal of SEC Staff Accounting Bulletin 121, which hindered banks from custodying crypto. If Democrats regain control, they could block further legislation and potentially reverse these measures, creating regulatory whiplash. The midterms thus represent a binary outcome for the crypto industry.
SEC fines: Nunn noted that the SEC under former Chair Gary Gensler imposed fines in the millions for violations involving concepts Gensler did not understand. Gensler was fired earlier in the Trump administration. The SEC’s enforcement actions under Gensler totaled over $5 billion, targeting firms like Ripple, Coinbase, and Kraken. Since his departure, the SEC has been reassessing pending cases, dismissing some and settling others on more favorable terms. This has reduced immediate legal pressure, but the lack of clear rules still hangs over the market.
GENIUS Act: Lawler referenced the GENIUS Act as a positive step but said Congress must establish a comprehensive federal regulatory framework. The bill, which defines stablecoins as securities and gives primary oversight to the CFTC, has drawn criticism from some industry players who argue it is too restrictive. However, Lawler views it as a necessary first step. The next phase would involve legislation covering utility tokens, decentralized exchanges, and mining—issues that remain contentious.
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Market Impact
The panel reflects a broader shift in congressional Republican attitudes toward digital assets, framing crypto policy through the lens of geopolitical competition and individual financial freedom rather than consumer protection or financial stability concerns. This approach could accelerate pro-industry legislation, especially if Republicans maintain or expand their majority in the midterms.
For investors, the national security narrative reduces the risk of a total crypto ban in the U.S. but introduces short-term regulatory uncertainty as the legal framework is negotiated. Nunn’s criticism of "double taxation" on Bitcoin mining suggests miners could benefit from more favorable tax treatment if Congress acts. Currently, miners pay taxes on both electricity costs and block rewards, compressing margins. A tax reform could boost profitability for U.S.-based miners like Marathon Digital and Riot Platforms, which have large domestic operations.
Additionally, the focus on competing with China could lead to policies that encourage domestic mining, such as subsidies or tax credits. This would not only benefit miners but also enhance energy security by incentivizing renewable energy use. However, the impact on altcoins is less clear, as the GENIUS Act focuses on stablecoins, leaving other tokens in regulatory limbo.
Your Alpha
Your Alpha
1Monitor the midterm elections: The composition of Congress after November 2026 will determine the speed and direction of crypto legislation. A Republican win likely accelerates favorable frameworks. If Democrats win, they may prioritize consumer protection, potentially delaying regulatory clarity. Keep an eye on polls and pro-crypto PAC donations, which have surged this cycle.
2Position in Bitcoin miners: If double taxation is eliminated, U.S.-based mining companies could see margin improvements. Consider exposure to miners with domestic operations, such as Marathon Digital (MARA) and Riot Platforms (RIOT). Additionally, the possibility of Bitcoin being included in U.S. strategic reserves, as hinted by some lawmakers, could boost institutional demand. However, be mindful of volatility if the election outcome is unfavorable.
3Track the GENIUS Act: Any progress on this bill will provide regulatory clarity, potentially triggering a rally in tokens deemed securities by the SEC. Stablecoins like USDC and USDT could benefit from a legal framework that legitimizes them. Exchanges that comply with the law may see increased activity. Conversely, if the bill stalls, uncertainty will persist, potentially stifling innovation.
trader analyzing charts
Next Catalyst
The November 3, 2026 midterm elections are the next major event. Republicans have tied crypto policy to national security, which could mobilize pro-crypto voters. If Democrats regain control, they could reverse legislative progress, increasing uncertainty. Additionally, the Trump administration, which already fired Gensler, could push industry-friendly appointments at the SEC and CFTC, accelerating regulatory clarity. Treasury Secretary Scott Bessent has also signaled support for a federal framework.
Another near-term catalyst is the SEC’s decision on spot Ethereum ETFs, expected in the coming weeks. Although not directly related to the panel, a favorable ruling would reinforce the narrative that the U.S. is embracing digital assets, potentially boosting the broader market. However, if the SEC delays or rejects the ETFs, it could trigger volatility.
The Bottom Line
The Bottom Line
The national security rhetoric changes the game: Bitcoin is no longer just an asset class but a geopolitical tool. For investors, this reduces existential risk but increases short-term political volatility. Watch the ballot box in November — the regulatory future of crypto in the U.S. hangs in the balance. The combination of elections, legislative progress, and competition with China creates a dynamic environment where timely information is key. Leverage on-chain data to monitor capital flows into miners and stablecoins, and adjust your portfolio based on electoral outcomes.
