Regulation
Crypto industry rallies behind HR 4763 as House vote nears
At a pivotal moment for crypto industry, HR 4763, known as Financial Innovation and Technology for the 21st Century Act (FIT 21), is expected to face a crucial vote in the US House of Representatives next week. This bill aims to create a global regulatory framework for digital assetswhich many believe is essential to foster innovation while protecting consumers.
Currently, the US crypto regulatory landscape is fragmented and outdated. Agencies like the SEC and CFTC operate with overlapping jurisdictions, often leading to confusion and regulatory uncertainty. This has led U.S. innovators to seek more favorable environments abroad, exposing U.S. investors to the risks of unregulated markets. Recent collapses of foreign companies have highlighted the dangers of this status quo.
HR 4763 seeks to address these issues by establishing clear guidelines on which digital assets fall under the jurisdiction of the SEC and CFTC. The bill includes important consumer protections such as segregating customer funds, requiring risk disclosure, extending bankruptcy protections, and imposing minimum capital requirements. These measures aim to protect customers and ensure the stability of the digital asset market.
The bill has garnered significant support from industry stakeholders. The Crypto Council for Innovation, along with major players like Coinbase, Kraken, and Andreessen Horowitz, wrote a letter to House leaders advocating for its passage. They argue that regulatory clarity will accelerate the growth of blockchain technology and digital assets, foster financial inclusion and protect national security.
Globally, the United States lags behind other major jurisdictions in developing a robust regulatory framework for digital assets. The European unionUnited Kingdom, SingaporeJapan, South Korea, the United Arab Emirates, Brazil and Australia have all made significant progress in this area. Without effective U.S. regulation, American innovators will continue to migrate abroad and investors will remain vulnerable.
Denelle Dixon, CEO of SDF, shared her perspective: “This bill has been a long time coming, and while it is not perfect – nothing ever is – it is a step forward solid for the industry. Adoption would provide much-needed clarity and structure, paving the way for growth and innovation in digital assets. If we succeed, the United States will return to the leadership debate. Let’s do this thing.
The importance of FIT 21 goes beyond regulatory clarity. This positions the United States to regain its leadership in financial innovation. Treasury Secretary Janet Yellen and CFTC Chairman Rostin Behnam have both emphasized the need for such a framework. SEC Chairman Gary Gensler acknowledged the challenges of regulating a market in which U.S. investors participate both domestically and abroad.
As the House vote approaches, the crypto industry is watching closely. Rep. Patrick McHenry, one of the bill’s main supporters, believes strong Democratic support in the House could spur the Senate to act. The outcome of this vote could determine the future of digital asset regulation in the United States.
Why is this important?
Passage of HR 4763 could transform the United States crypto market providing much-needed regulatory clarity and consumer protection. This would help the United States keep pace with its global competitors and reaffirm its leadership position in financial innovation. The success or failure of the bill will have far-reaching implications for the industry, investors and the economy as a whole.