Why U.S. Crypto Bill Approval Is Being Heralded as a Victory

The bill results from a rare joint effort between the Financial Services and Agriculture committees.

people and a Shiba Inu jumping high in colourful psychedelic clouds in celebration of victory.
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  • The U.S. House Financial Services Committee has voted in favor of a new crypto bill.
  • The crypto industry has celebrated the passing of the bill as a win.
  • The bill results from a rare joint effort between the Financial Services and Agriculture committees.

On Wednesday, July 26, a landmark crypto bill aimed at bringing long-desired regulatory clarity passed a vote by the United States House Committee on Financial Services. 

The Financial Innovation and Technology (FIT) for the 21st Century Act clarifies when crypto firms should register with the U.S. Securities and Exchange Commission or the Commodity Futures Trading Commission.

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The passing of the committee vote has sparked jubilation among crypto industry participants, who have found a glimmer of hope from the unexpected bipartisan support the bill received.

Strange Bedfellows

“This is a historic day for crypto policy,” Blockchain Association Chief Policy Officer Jeff Chervinsky tweeted, commenting on the vote. Discussing the 35 to 15 vote, the lawyer pointed out that the bill had also received significant support from Democrats in the committee.

"This sends a strong bipartisan message in favor of reasonable regulation for digital assets," he added.

Six out of 23 Democrats on the House Financial Services Committee, including Representatives Jim Himes, Ritchie Torres, Josh Gottheimer, Steven Horsford, Wiley Nickel, and Brittany Petterson, voted in favor of FIT for the 21st Century Act. As one user was quick to point out, this represented over 25% of Democrats on the committee.

The bipartisan support is a significant feat, as several top Democrats had expressed significant opposition to the bill. A tweet from the Democratic-controlled account of the Financial Services Committee had described the bill as “Not fit” and “rushed” on the day of the vote.

Delphi Labs General Counsel Gabriel Shapiro lauded the extraordinary ability of House Financial Services Committee Chair Patrick McHenry and others who sponsored the bill to convince Democrats to join in, given the earlier “negativity.”

Zero Knowledge Consulting Managing Partner Austin Campbell shared the names of the Democrats who supported the bill and rallied crypto community members to give them their support.

The FIT for the 21st Century Act results from a rare collaboration between the House Financial Services Committee and the House Committee on Agriculture, having oversight over the SEC and CFTC, respectively. 

The House Committee on Agriculture will vote on the bill on Thursday, July 27.

On the Flipside

  • Even if the bill passes a vote in the Republican-controlled House, it faces an uphill task in the Democrat-controlled Senate.

Why This Matters

Support from Democrats would be crucial to get the bill to become law. The recent unexpected support from Democrats in the House gives the crypto industry a glimmer of hope.

Read this to learn more about the approved crypto bills:

Crypto Bills Approved by Congress for Regulatory Clarity

Learn more about the Bank of Italy’s partnership with Polygon:

Bank of Italy Tips Polygon for Institutional DeFi Innovation

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Okoya David

David Okoya is a crypto news reporter at DailyCoin based in Nigeria. He covers various topics related to the cryptocurrency industry, including exchanges, regulations, and price movements, and strives to bring fresh angles to breaking news. With experience as a freelance crypto news writer, David upholds the highest journalistic standards, telling complete stories and answering lingering questions whenever possible.