- President Biden has addressed the upcoming FIT21 act.
- The White House is against the bill.
- However, the administration expressed a willingness to collaborate with Congress.
The US Congress is preparing the floor to vote on the Financial Innovation and Technology for the 21st Century Act (FIT21), a legislative initiative designed to define how regulators and investors approach novel assets like cryptocurrencies.
With Biden’s staunchly anti-crypto administration at the helm, hopes for the bill remained low until the White House made its latest statement.
Biden Willing to Work with Congress on New Crypto Bill
On Wednesday, May 22, President Biden’s administration addressed the upcoming FIT21 act. In its latest statement, the White House objected to the bill’s passage, asserting that it could affect the US’s regulatory structure for digital assets.
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President Biden’s administration argued that FIT21, in its current form, lacked “sufficient protections for consumers and investors who engage in certain digital asset transactions,” adding that it needed more time to work with Congress on digital asset legislation.
However, despite its reservations, the White House expressed that it is “eager to work” with Congress to establish a comprehensive and balanced regulatory framework for digital assets based on existing authorities.
The comments come as the US House of Representatives prepares to vote on FIT21 later today.
What Is FIT21’s Goal?
The FIT21 bill, passed out of committee in July 2023, seeks to clarify how digital assets are regulated by clearly defining the roles of the US CFTC and the SEC. It is the first time the committee has marked up crypto-specific legislation, with lawmakers highlighting that these bills are necessary to prevent the US from falling behind other countries in regulating crypto.
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If approved, the act could transform how crypto is regulated, giving the industry much-needed clarity. Many crypto companies, including Gemini, Kraken, Coinbase, and the Digital Currency Group, have signed a letter supporting the bill stating that digital asset firms are currently tied to securities laws designed nearly a century ago.
On the Flipside
- Earlier in May, the US House of Representatives passed a groundbreaking resolution to overturn the SEC’s crypto accounting guidance. However, President Joe Biden threatened to veto it before they could celebrate.
- SEC Chair Gary Gensler voiced his concerns regarding the FIT21 act, asserting that crypto still fits century-old laws.
Why This Matters
While President Biden’s administration may not endorse the bill outright, their willingness to work with Congress to create an equitable and comprehensive regulatory framework for cryptocurrencies is a major step in the right direction, particularly considering it was willing to veto any pro-crypto legislation.
Read why the SEC chair is against FIT21:
SEC Chair Slams Crypto Act for Not Conforming to 90-Year Model
Watch DailyCoin’s latest interview with Bybit’s COO:
Interview: Bybit COO Helen Liu Talks Unity in Crypto
