Blockchain
House Passes Cryptocurrency Regulation Bill, Aims for Senate Approval
The US House of Representatives has passed the Financial Innovation and Technology for the 21st Century Act (FIT21), a bill aimed at regulating the cryptocurrency market.
Wednesday’s bipartisan vote resulted in 279 members, including 71 Democrats, supporting the legislation, while 136 opposed it.
This bill, now before the Senate, could create a new regulatory framework for digital assets by improving oversight of the Commodity Futures Trading Commission (CFTC).
It also introduces guidelines for secondary market trading of digital commodities initially offered as investment contracts, as well as addressing issues relating to stablecoins and anti-money laundering protocols.
Despite White House criticism of the bill for lacking adequate protections for consumers and investors, the administration has indicated a willingness to work toward a regulatory framework for digital assets.
The passage of FIT21 signals a potential shift in Congress’ perspective on cryptocurrencies and their influence on the financial sector.
FIT21 met opposition by SEC Chairman Gary Gensler, who argues that the bill could lead to regulatory loopholes and undermine investor protection.
Democrat Maxine Waters, House Financial Services Committee, also expressed concern, arguing that the bill could overburden the CFTC and not provide enough regulatory authority.