Regulation
FIT21 Becomes New Hope for US Crypto Regulation
The groundswell of support for the Financial Innovation and Technology for the 21st Century Act, or FIT21, bill continues to grow among the US crypto industry. More than 60 well-known crypto companies and organizations have signed a petition to encourage Congress to immediately pass legislation, which is seen as new hope for creating clear and comprehensive crypto regulations.
The Crypto Council for Innovation (CCI), composed of giants such as Coinbase, Gemini and Andreessen Horowitz, is the initiator of this petition. They joined The Digital Chamber, Stand With Crypto, as well as other crypto investment firms such as Circle, Digital Currency Group, Galaxy, and famous venture capitalist Andreessen Horowitz.
In letters of support to members of Congress, dozens of these crypto entities have called for the adoption of FIT21 as a solution to end the regulatory uncertainty haunting the crypto asset sector. Without clear regulations, many American crypto companies and innovators are fleeing to other countries more friendly to digital financial innovation.
“FIT21 will provide much-needed legal certainty while ensuring consumer and investor protection. Without action from Congress, American innovators will continue to locate abroad,” the letter said.
This bill proposed by Republican Rep. France Hill would provide authority and guidance to the U.S. Commodity Futures Trading Commission (CFTC) and Securities and Exchange Commission (SEC) to clearly regulate the issuance and trading of assets cryptographic.
Apart from this, FIT21 will also regulate minimum capital requirements, protection of consumer funds, restrictions on conflicts of interest and bankruptcy protection of crypto entities that will operate in this superpower country.
“The lack of a comprehensive legal framework has left the United States lagging behind other major jurisdictions such as the European Union, the United Kingdom, Singapore, Japan and South Korea in the development of the crypto-economy,” added supporters of the bill.
The trend of crypto companies leaving the United States is increasingly evident. Recently, Kraken, the leading cryptocurrency exchange company in the United States, announced plans to move its headquarters to the European Union due to concerns about the unfriendly attitude of national regulators towards the crypto industry.
“There is growing demand for crypto services from US customers, but all expect legal certainty and better oversight,” said Jesse Powell, CEO of Kraken.
Responding to these concerns, SEC Chairman Gary Gensler said it would finalize crypto regulations this year. However, many crypto circles still doubt this because, so far, the SEC tends to be tough on crypto asset companies.
The conflict between US financial authorities and crypto companies is increasingly escalating, as evidenced by what happened between Ripple and the SEC, reinforcing the urgency to adopt FIT21. If passed, this bill is considered a game changer that can end uncertainty and reaffirm the United States’ position as a global mecca for financial innovation in today’s era of cryptography.
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Authors: RB & AL
Related tags: #CryptoNews today.