Blockchain
The Financial Innovation and Technology for the 21st Century Act represents a watershed moment for our industry
The passage of the Financial Innovation and Technology for the 21st Century Act (FIT21) by the U.S. House of Representatives represents a major milestone for the digital asset industry. As the head of the Blockchain Association, the main trade group representing this industry, I am heartened to see such strong bipartisan support for attempting to codify clear rules that aim to enable responsible innovation while protecting consumers.
Note: The opinions expressed in this column are those of the author and do not necessarily reflect those of CoinDesk, Inc. or its owners and affiliates. Kristin Smith is CEO of the Blockchain Association, the Washington, DC-based trade association representing cryptocurrencies.
For too long, the regulatory landscape for digital assets in the United States has been an unsustainable and confusing mess. Multiple federal agencies have asserted conflicting jurisdiction, creating confusion and uncertainty in the market. Meanwhile, the US Securities and Exchange Commission (SEC) has taken advantage of this precarious situation, ramping up a campaign of intimidation and control that threatens the sustainability of cryptocurrencies in the US
This has led to further uncertainty, costly legal battles, and the risk of the United States falling behind other regions like the European Union in fostering a vibrant domestic crypto landscape.
The status quo simply doesn’t work for anyone: not for companies building innovative new products and services, not for investors, and certainly not for consumers. It was time for Congress to step in, reclaim its rightful place as the driver of economic policy, and draft a modern, fit-for-purpose regulatory framework.
While the legislation is expected to be further refined as it moves through the Senate, FIT21 represents a notable step in the right direction. It recognizes the fundamental promise of crypto and blockchain technology and strives to foster innovation while protecting consumers. This legislative approach to balancing these key priorities is exactly what our industry has supported. It’s also what consumers are asking for.
We commend the efforts of House Financial Services Committee Chairman Patrick McHenry (R-N.C.) and House Agriculture Committee Chairman Glenn Thompson (R-Pa.) who spearheaded this legislation. They have dedicated months of work, constantly interacting with industry stakeholders, including Blockchain Association member companies, to understand the key issues and try to get the picture right.
While FIT21 isn’t perfect – no invoice is – we will continue to support productive changes. Today’s vote represents undeniable progress toward a rational policy framework that can bring clarity to digital assets in the United States. After the difficulties of 2022, it is gratifying to see elected leaders champion this critical technology that a growing number of Americans want their government to support, or at least not impede.
The House vote reaffirms cryptocurrencies’ growing political momentum, following positive developments such as Congress’ recent bipartisan repeal of SAB121, the SEC’s flawed and illegal accounting guidance. A recent survey shows that growing factions of the American electorate want to elect politicians who understand cryptocurrencies and are willing to respect and support the growth of the technology in the United States
And cryptocurrencies could yet become a hot issue in the next presidential race, with former President Trump recently embracing the technology with an explicit call for support.
As FIT21 advances in the Senate, the Blockchain Association and our members will remain constructively engaged, advocating for smart policies that promote responsible innovation and, above all, protect consumers. We express sincere gratitude to the House leaders who spearheaded the initiative to reach this watershed moment – and we look forward to maintaining cryptocurrency’s extraordinary political momentum in the months ahead.