Changes in the Speaker of the U.S. House of Representatives May Affect the Development of the Encryption Industry

Recently, there has been a significant change in the U.S. political landscape, with Kevin McCarthy being removed from the position of Speaker of the House. This event may have adverse effects on the encryption currency industry.

Currently, Republican Patrick McHenry, who supports the encryption industry, is temporarily taking over as Speaker. However, it remains uncertain who will become the official Speaker in the future and whether the U.S. government can avoid a shutdown after the temporary funding agreement expires on November 17. These uncertainties could have an impact on the encryption world.

In Washington, pro-encryption policymakers are not common. Mike McHenry, as one of the few legislators supporting the encryption industry, previously threatened to issue a subpoena to Securities and Exchange Commission Chairman Gary Gensler regarding his dealings with the FTX exchange. Currently, McHenry also serves as the Chairman of the Financial Services Committee, but this position may soon change.

If McHenry is forced to take on the role of official Speaker, he will have to give up his position as chairman of the Financial Services Committee. This may result in the committee losing a supporter of the encryption industry, thereby affecting the progress of introducing encryption legislation.

Another potential successor to McCarthy, the encryption ally Tom Emmer, also stated that he has no intention of seeking the position of Speaker. This further increases the likelihood of the encryption industry losing important supporters in Congress.

In addition to political changes, the government's potential risk of shutting down could also pose a threat to the encryption market. While it may lead to increased market volatility in the short term, some analysts believe that digital assets like Bitcoin may quickly recover, as they tend to hedge well against the inherent risks of the traditional financial system.

Despite temporarily avoiding a government shutdown recently, the risk will arise again in 44 days. Meanwhile, the Federal Reserve may continue to raise interest rates at its meeting on November 1, which will also affect market trends before the end of the year.

McCarthy's removal marks the first time in American history that a sitting Speaker of the House has been voted out of office. This decision was primarily due to his stance on the government shutdown issue, particularly his push to pass a bill to avoid a government shutdown, which sparked dissatisfaction among some far-right Republicans.

Overall, these changes in the American political landscape may bring uncertainty to the development of the encryption industry, and industry participants need to closely monitor subsequent developments.