Regulation
Crypto Market Regulation: US House of Representatives Vote Imminent
The TDR’s three key points regarding crypto market structure and crypto market regulation:
- Lawmakers are pushing for clear regulation of the crypto market under FIT21.
- Crypto market stability and investor safety are highlighted in the FIT21 bill.
- Crypto market regulation hangs in the balance with Senate decision on FIT21.
The United States House of Representatives is set to hold a critical vote on the “Financial Innovation and Technology for the 21st Century Act” (FIT21), which could significantly influence the structure of the crypto market. This bill, passed by the House Financial Services Committee in July 2023, aims to clarify regulations relating to digital assets by defining responsibilities between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission ( CFTC).
The legislation aims to address regulatory gaps highlighted by the fall of cryptocurrency exchange FTX, underscoring the need for a robust regulatory framework. Representative French Hill highlighted the bipartisan efforts behind this initiative, saying, “Having worked tirelessly across the aisle and across the country over the past year to develop a clear and pragmatic regulatory framework for digital assets , I am proud that this historic legislation is coming. the floor of the house. The goal goes beyond improving consumer protection; it also aims to consolidate American leadership in the blockchain sector.
The collapse of FTX highlighted weaknesses in crypto market regulation, underscoring the need for strict consumer protection. “As the collapse of FTX has shown, we need strong consumer protections and a functioning regulatory framework to ensure that the rapidly growing digital asset ecosystem is safe for investors and consumers while positioning America as a leader in blockchain innovation,” Hill explained. The FIT21 bill is seen as a crucial step towards achieving these goals.
The bill’s progress is not yet assured, and its outcome in the U.S. Senate remains uncertain despite strong bipartisan support in the House. The legislation is particularly timely as the regulation of digital assets becomes more crucial in election-year politics, with lawmakers keen to position the United States as a leader in blockchain innovation.
The House of Representatives’ vote on crypto market structure could significantly influence the regulation of digital assets and affect consumer protection and the United States’ position in the global blockchain market. This decision is crucial for stakeholders, from investors to regulators. You want to stay informed of all the research and news from TDR, subscribe to our daily newspaper Baked Newsletter.