US House Approves FIT21 Crypto Bill, Awaiting Senate Approval
The US House of Representatives has voted in favor of a bill aimed at providing regulatory clarity for digital assets, according to CoinTelegraph. The Financial Innovation and Technology for the 21st Century (FIT21) Act, also known as H.R.4763, was approved by a 279 to 136 vote on May 22. The bill, which now awaits Senate approval and presidential assent, seeks to define the roles of the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) in regulating digital assets. The legislation was supported by 71 Democrats and 208 Republicans.
Regulatory Clarity for Digital Assets
Representative Patrick McHenry, speaking before the House vote, argued that the current regulatory framework was stifling innovation in the digital assets space. He noted that the SEC and CFTC were in a struggle for control over these asset classes. However, not all lawmakers were in favor of the bill. Representative Maxine Waters expressed her opposition, arguing that the bill would create a regulatory vacuum for cryptocurrencies and allow traditional finance firms to operate without SEC oversight.
White House Opposition
Despite the House's approval, the White House expressed its opposition to the FIT21 bill. However, President Biden has not threatened to veto the bill, which is seen as a positive sign for the crypto industry. The administration cited concerns about the lack of investor protections if the bill becomes law. However, it also indicated a willingness to work with Congress on future legislation addressing the crypto markets.
SEC Chair's Opposition
Gary Gensler, Chair of the SEC, also voiced his opposition to the bill, arguing that it would undermine the regulator's efforts to oversee both traditional capital markets and crypto markets. He noted that the bill would redefine how securities issuers comply with existing federal law and Supreme Court precedent.
Future Crypto Legislation
The FIT21 bill is one of several crypto-related legislations under consideration. Another such bill, H.R. 5403, the Central Bank Digital Currency (CBDC) Anti-Surveillance State Act, seeks to prevent the Federal Reserve from issuing a digital dollar through intermediaries. This bill, along with the FIT21 bill, reportedly does not have the support of the Democratic Party leadership.
Crypto in Election Year
The passage of crypto-related legislation and the SEC’s pending decision on a spot Ether exchange-traded fund comes as the United States moves deeper into an election year, with digital assets on many voters’ minds. President Joe Biden and former President Donald Trump, the presumptive candidates for the Democratic and Republican Parties in 2024, have agreed to two debates on June 27 and Sept. 10.
Final Thoughts
The passage of the FIT21 bill by the House of Representatives marks a significant step towards regulatory clarity for digital assets in the US. However, the bill's future remains uncertain, with opposition from both the White House and the SEC. What do you think about this development? Do you believe the FIT21 bill will provide the necessary regulatory clarity for digital assets? Share your thoughts and this article with your friends. Don't forget to sign up for the Daily Briefing, which is delivered every day at 6pm.
