At least 8 Democrats support FIT21 bill to seek regulatory framework for crypto industry

KEY POINTS

• GOP supporters said the bill was a chance to ensure consumer protections and regulatory clarity.
• Rep. Himes, a crypto skeptic, said the United States deserves “better than the status quo.”
• Some crypto figures have since called on Americans to urge their representatives to vote Yes

Several Democratic lawmakers in the U.S. House of Representatives have expressed support for a bill to establish a regulatory framework for the cryptocurrency industry, signaling a shift in tone among Democratic Party lawmakers who have largely been hard-line towards the digital assets sector.

“As Democrats, we believe this is a critical opportunity to regulate the digital asset market. This should not be a partisan issue,” said Reps. Wiley Nickel of North Carolina, Yadira Caraveo of Colorado, Jasmine Crockett of Texas, Darren Soto of Florida, Jim Himes of Connecticut, Don Davis of North Carolina, Josh Gottheimer of New Jersey and Ritchie Torres of New York wrote in an internal memo shared to CoinDesk by a congressional aide.

House Resolution 4763, or the Financial Innovation and Technology for the 21st Century (FIT21) Act, is widely supported by Republicans and is expected to be discussed on the floor Wednesday. The bill is also expected to be voted on later today.

Republicans on the House Financial Services Committee said Tuesday that the bill is an opportunity for Congress to “provide strong consumer protections and the regulatory clarity needed to foster innovation” in the country.

Several figures in the digital assets industry have since commented on the bill.

Founder and CEO of venture capital firm Haun Ventures, Kathryn Haun, said FIT21 was “a first step” in bringing regulatory clarity to crypto companies in the United States. She urged Americans to “make sure your representative hears you today,” adding that calls and emails to respective representatives will help educate and influence lawmakers.

Jesse Pollak, the creator of crypto exchange giant Coinbase’s layer 2 blockchain, echoed Haun’s sentiments, calling on crypto users to urge their representatives to vote Yes for FIT21.

Stand With Crypto, a crypto advocacy center, is also advocating for the adoption of the proposed legislation. “It is a national priority to keep crypto innovation at home and protect the millions of jobs and users who reside within our borders,” the group said.

Paul Grewal, Coinbase’s chief legal officer, called out some of the Democrats mentioned in the memo seen by CoinDesk, challenging the crypto industry to “call these supporters #FIT21 crypto bros.” He posted a photo showing what some of the bill’s Democratic supporters reportedly said about FIT21.

Rep. Caraveo said HR 4763 was “not a perfect bill,” although she acknowledged it was a “good step in the right direction,” according to Grewal’s post. “I am deeply skeptical about this [crypto] industry, but we deserve better than the status quo,” Himes said according to the post.

News of Democrats’ apparent shift toward better crypto regulations comes about a week after members of the House and Senate passed a House resolution that was overturned a controversial cryptocurrency custody bulletin from the United States Securities and Exchange Commission (SEC).

The Wall Street regulator has been criticized in recent years for its alleged “overbreadth” of regulation, and some Republican lawmakers have said clear regulations should help prevent malicious activity in the industry while still allowing innovation .

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