Blockchain Association pushes FIT21 parliamentary vote

Last updated: May 20, 2024 at 11:58 a.m. EDT | 2 minutes of reading

The Blockchain Association called for a full floor vote on the Financial Innovation and Technology for the 21st Century Act (FIT21) in a letter Monday to House Speaker Mike Johnson and Minority Leader Hakeem Jeffries.

Blockchain Association Pushes House Vote for FIT21

FIT21 (also known as HR 4763) is expected to be voted on in the House this week. Its eventual passage in the House and Senate would be the first time the United States would see crypto-oriented regulation.

The letter, signed by crypto heavyweights including Ripple, Kraken and Circle, pushes for a House vote on the legislation, citing the need for “legislation providing a framework for innovation, regulatory clarity for American operators and protection for users and consumers. »

“Since the inception of the Bitcoin network in 2009, the blockchain and digital assets industry has existed without targeted market regulation,” reads the letter to Jeffries and Johnson. “The absence of clear rules leads to market confusion for businesses – and leaves users and consumers unprotected.

US under fire for unclear crypto regulations

US regulators have come under scrutiny for their treatment of the crypto sector. The United States Securities and Exchange Commission (SEC) is often criticized for its regulatory approach by application.

Critics say the strict anti-crypto climate could push U.S. companies overseas and stifle the country’s technological progress.

“This lack of clarity hinders innovation and cripples businesses, harming America’s position in the global technology race,” the Blockchain Association letter continues. “We seek pro-innovation, pro-consumer safeguards to ensure a fair and safe marketplace and to safeguard U.S. technological leadership in this cutting-edge space.”

If passed, FIT21 would see the majority responsibility for regulating digital assets delegated to the Commodities Future Trading Commission (CFTC) while increasing legal protections for crypto consumers.

Congressional Momentum Around Crypto Strengthens After SAB121

News of Monday’s letter comes amid growing momentum for effective crypto legislation, following Congress’ approval of a resolution that could potentially remove the Controversial SEC Accounting Bulletin, SAB121of his advice.

Previously, President Joe Biden said he would ultimately veto the attempted disavowal of SAB121, citing “substantial financial instability and market uncertainty” if he approved the resolution.

Strong bipartisan support against the SEC’s crypto guidelines, however, could force Biden to rethink his stance.

If Fit21 follows suit, it could signal a new era of regulation of digital assets across the United States, with greater freedoms granted to players in the crypto space.

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