- The United States House Financial Services Committee is considering voting on FIT21.
- FIT21 could make a big difference in how crypto is regulated, giving much-needed clarity to the industry.
- However, recent interventions by the White House against pro-crypto legislation dampen hopes.
The US crypto industry still finds itself tangled in a convoluted maze of regulatory uncertainty. Despite repeated pleas for clarity, regulators continue to maintain the status quo, running a rampant campaign against crypto companies and driving them away.
In a bid to stem the exodus of talent and companies from the country, lawmakers took a decisive step in the summer of 2023 by voting in favor of the Financial Innovation and Technology for the 21st Century Act (FIT21), a crypto bill promising to provide much-needed clarity to regulators and investors.
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After much delay, the crypto bill is finally set to advance to the House floor, marking a pivotal moment for the US crypto industry.
Revolutionary Crypto Bill Makes It to the House
Lawmakers with the United States House Financial Services Committee announced on May 10 that they are gearing up for a full floor vote of the FIT21 act.
House Financial Services Committee Chair Patrick McHenry suggested that the bill might be up for a vote “later this month” after much consideration in the House Committee on Rules.
The FIT21 bill, passed out of committee in July 2023, seeks to clarify how digital assets are regulated by clearly defining the roles of both 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 U.S. from falling behind other countries in regulating crypto.
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“After tirelessly working across the aisle and across the nation over the past year to craft a clear, pragmatic regulatory framework for digital assets, I am proud that this landmark legislation is coming to the House Floor,” said Representative French Hill.
“As the collapse of FTX demonstrated, we need strong consumer protections and a functional regulatory framework to ensure the rapidly growing digital asset ecosystem is safe for investors and consumers while securing America as a leader for blockchain innovation.”
The act, if passed, could make a big difference in how crypto is regulated, giving much-needed clarity to the industry. However, the impending vote is just one layer of its concerns.
A Challenging Course Awaits For FIT21
The House is the starting line for the FIT21 Act, and a challenging obstacle course awaits. If it passes the House, the bill would need to pass the Senate and then be signed into law by President Joe Biden. However, given the White House’s staunch anti-crypto campaign, hopes remain low.
Earlier this week, the US House of Representatives passed a groundbreaking resolution to overturn the SEC’s crypto accounting guidance, which had barred banks from handling crypto customers. However, before Congress could celebrate, US President Joe Biden vowed to stay the course with his anti-crypto stance, pledging to veto any pro-crypto legislation.
President Biden claimed that overturning the SEC’s SAB121 act would jeopardize the regulator’s mission to safeguard investors in crypto markets and the broader financial system.
Still, despite the bill’s looming hurdles, it is a critical and historic step toward establishing a regulatory framework for digital assets in the US.
On the Flipside
- Crypto exchange Coinbase’s Stand With Crypto initiative, a political action committee, looks to support pro-crypto candidates in 2024.
- Former President Donald Trump recently rubber-stamped crypto assets, claiming a vote for him for a vote for crypto.
Why This Matters
The crypto industry has ballooned into an elephant in the room that regulators can no longer overlook. Despite purported efforts by US regulators to rein it in, the industry only grows stronger, attracting institutional and retail interest. FIT21 represents a major leap forward for the industry, offering the potential for much-needed clarity and paving the way for a healthier ecosystem.
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