Regulation
FIT21 unlikely to pass Senate before November election
Even though the Financial Innovation and Technology for the 21st Century Act (FIT21) received bipartisan support and passed the House of Representatives, the law is likely to be challenged in the Senate as analysts believe that before the November elections it may not be approved.
FIT21 unlikely to pass Senate before election
Although there is a growing general consensus on the need for regulation of cryptocurrencies, lawmakers, lawyers and lobbyists expressed concerns during the 2024 consensus event that due to the opacity of FIT21, more precise adjustments are necessary. So they predict that this bill likely won’t pass the Senate before the November election.
Nonetheless, the passage of the entire FIT21 bill by the House, just 18 months after the political backlash resulting from the FTX The scandal shows a sea change of mind in Congress regarding digital assets.
CFTC Commissioner Summer Mersinger highlighted the responsibilities of passing and enforcing such broad legislation by stating that often, after the bill is signed into law, rulemaking can take months or even years. . By identifying the time required for a regulatory change to take effect, Mersinger was able to equate it to the time required to implement the Dodd-Frank Act.
Congressional support and regulatory hurdles
The motivation behind FIT21 stems from the formalization of the primary jurisdictional division between the SEC and CFTC regarding digital assets. However, the Biden administration has expressed concerns that some regulatory gaps could emerge that could threaten market efficiency.
SEC Commissioner Hester Peirce also spoke about the need to clarify the legislation, criticized the SEC’s previous actions, and welcomed the lawmaker’s increased engagement in the area of cryptocurrencies.
At the same time, Republican Representative Tom Emmer classified cryptocurrencies as a non-partisan matter and called for appropriate regulatory guidelines that focus on rights rather than restrictions. His speech at Consensus 2024 aligns well with sentiments shared by other lawmakers in favor of better regulation of cryptocurrencies.
Building a pro-crypto legislative force
As Coingape previously reported, U.S. Sen. Cynthia Lummis had reaffirmed the strengthened support for cryptocurrency within Congress.
After a series of legislative victories attributed to the promotion of cryptos, Lummis declared the creation of a pro-crypto army in Congress promote favorable regulation of the industry.
This development received positive responses on social media, especially among cryptocurrency enthusiasts who are optimistic about new favorable regulatory frameworks in the future.
Read also: Ripple CTO David Schwartz Shares “Proof” He’s Not Satoshi Nakamoto