Regulation
Landmark crypto bill gains approval from US House of Representatives
The crypto industry reached a historic milestone on Wednesday when the United States House of Representatives passed the Financial Innovation and Technology for the 21st Century Act (FIT21).
The bill, which aims to establish a comprehensive regulatory framework for digital assets, was approved with bipartisan support by a vote of 279 to 136. This marks an important step towards legal clarity in the crypto space.
FIT21 enjoys strong support from lawmakers and industry leaders
With 71 Democrats joining 208 Republicans in favor, the passage signals a growing consensus on the issue. the need for clear crypto regulations. Introduced in July 2023, the bill aims to define the roles of the Securities and Exchange Commission (SEC) and the Commodity Futures contracts Trading Commission (CFTC) to oversee cryptocurrencies. It also establishes guidelines for various aspects of the crypto market, including token issuance, trading, and custody.
Several lawmakers expressed strong support for the bill’s passage. Congressman John Rose emphasized the need to move away from regulation by application.
“I’m tired of Biden administration officials regulating through enforcement. That’s why I support FIT21, legislation that will prevent government from standing in the way of digital innovation. The bill includes critical safeguards that will protect consumers and foster innovation,” said Congressman Rose. said.
Additionally, Representative Wiley Nickel highlighted the importance of establishing a modern regulatory framework that recognizes the unique nature of digital assets.
“FIT21 provides a clear regulatory framework for digital assets instead of relying on 90-year-old securities law written before the internet existed. It’s a big problem. Whether you love or hate crypto, you must support regulation,” Rep. Nickel declared.
Learn more: Crypto regulation: what are the advantages and disadvantages?
Industry executives echoed this enthusiasm. Brad Garlinghouse, CEO of Ripple, praised the bipartisan support for FIT21 and criticized the SEC’s approach to crypto regulation.
“Now, more than ever, we see how Gensler has been a political liability to the Biden administration. This is why we saw 71 Democrats cross the aisle and support FIT21. We’re just getting started!” Garlinghouse wrote on his X account (Twitter).
Jake Chervinsky, legal director of Variant, also shared his views regarding the passage of the bill. He sees it as a vote of no confidence in the SEC’s current position on crypto.
“House Democrats vote in favor of this bill: 71. This represents a large number of Democratic elected officials voting “censor” on the current SEC and sending a message to the Biden administration that “anti-crypto” is a losing platform this year,” he said. said.
Nischal Shetty, co-founder of Shardeum, believes that the adoption of FIT21 has broader implications for the Web3 ecosystem. According to Shetty, the regulatory clarity provided by the FIT21 Act could encourage broader adoption of cryptocurrencies and an expansion of the Web3 industry.
“With the clarity and support provided by initiatives such as FIT21, we can expect a significant increase in adoption, which will naturally lead to better tax laws and regulatory frameworks,” Shetty told BeInCrypto.
Despite significant progress in the House, FIT21 faces an uncertain future in the Senate. There are currently no matching invoices.
Additionally, the necessary committees have not yet engaged in the same level of work on cryptography. This makes the path forward less certain.
However, the White House expressed his opposition to the bill, citing concerns about consumer and investor protection. The administration recognizes the need for a regulatory framework for digital assets. However, they believe that FIT21 requires additional guarantees in its current form.
“The Administration looks forward to continuing to work with Congress on developing digital asset legislation that includes adequate safeguards for consumers and investors while creating the conditions necessary for innovation, and additional time will be required for such collaboration,” the White House said. wrote.
However, the president Joe Biden’s statement did not mention a veto threat. This contrasts with his stance on another crypto-related billStaff Accounting Bulletin 121 (SAB 121).
BeInCrypto previously reported that SEC Chairman Gary Gensler also expressed strong opposition to the bill before the House vote. He argued that it weakened SEC oversight and warned that it could increase risks for investors and hurt U.S. markets.
Learn more: How does regulation impact crypto marketing? A complete guide
Despite opposition, this passage marks a pivotal moment in the ongoing effort to provide clear regulation to the crypto industry in the United States. With the FIT21 Act now in the hands of the Senate, the industry is closely watching whether it will become law. Nonetheless, this development could potentially transform the regulatory environment for digital assets in the United States.
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