Regulation
House Considers Legislation for More Clarity on Crypto Regulations
The House Financial Services Committee announced plans on Friday (May 10) to review the Financial Innovation and Technology for the 21st Century (FIT21) Act.
This announcement paves the way for a crucial vote later this month, signaling Congress’ commitment to providing clarity and regulatory certainty for cryptocurrency and other digital assets.
In his crypto predictions regulationcrypto.news highlighted the FIT21 Act as one of the key pieces of legislation to be addressed in 2024.
Speaker Glenn Thompson presented the act alongside Rep. French Hill, Rep. Dusty Johnson, Whip Tom Emmer and Rep. Warren Davidson. It aims to establish clear and functional federal requirements for crypto markets. It aims to provide the consumer protection and regulatory clarity necessary for the growth of the US crypto industry.
House Financial Services Committee Chairman Patrick McHenry highlighted the importance of the FIT21 Act in addressing long-standing regulatory uncertainties, saying, “For too long, the U.S. digital asset ecosystem has been plagued by regulatory uncertainty that has stifled innovation and left consumers unprotected.
McHenry added: “This comprehensive market structure legislation is the culmination of years of bipartisan efforts to finally provide clarity. »
For too long, the U.S. digital asset ecosystem has been plagued by regulatory uncertainty that has stifled innovation and left consumers unprotected.#FIT21 This will solidify U.S. leadership in the global financial system and strengthen our role as an international hub for innovation. https://t.co/SI1ovRXk4c
–Patrick McHenry (@PatrickMcHenry) May 10, 2024
The FIT21 Act proposes several key measures to strengthen transparency, accountability and consumer protection within the crypto asset ecosystem.
It grants the Commodity Futures Trading Commission (CFTC) new jurisdiction over crypto products.
It clarifies the Securities and Exchange Commission (SEC) on digital assets offered under an investment contract.
Congressman French Hill highlighted the importance of the legislation in light of recent market events, stating: “As the collapse As FTX has demonstrated, 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 trading. America a leader in blockchain innovation.
Also reacting to the announcement, Ro Khanna, the U.S. Representative for California’s 17th Congressional District, noted in X that regulatory uncertainty has kept innovation and job opportunities away from the United States.
The 1/2 Congress will finally bring clarity and security to the blockchain. This builds on a bill I co-led. Innovation and jobs have disappeared due to regulatory uncertainty. I will support this bill provided there are no poisonous amendments, because it defines what is a title and what is a commodity. https://t.co/3g4ENkB8Ad
-Ro Khanna (@RoKhanna) May 10, 2024
He pledged to support the bill, provided no damaging amendments were added. Khanna also highlighted the importance of defining what constitutes a security in relation to a product and implementing the necessary safeguards to protect consumers from scams.
The lawmaker expressed eagerness to support amendments that strengthen consumer protections as the bill moves through the legislative process.