Regulation
The White House opposes the FIT21 law
President Joe Biden’s administration will neither support nor veto the Financial Innovation and Technology for the 21st Century Act (FIT21).
In an official statement dated Wednesday, the Executive Office of the President Express opposition to the current version of the FIT21 law if the US House of Representatives votes in favor of it in the coming hours.
The statement highlighted concerns that the FIT21 Act, as it stands, could affect the US regulatory framework for digital assets. Despite this opposition, the Biden administration has emphasized its willingness to work with policymakers to develop clear crypto legislation.
“The administration looks forward to working with Congress to ensure a comprehensive and balanced regulatory framework for digital assets,” the statement said.
White House Statement on FIT21 Act Crypto Bill | Source: White House
A long way to go
The White House’s position somewhat aligns with that of US SEC Chairman Gary Gensler, who also expressed opposition at FIT21. Gensler repeated chants of non-compliance from crypto industry players, emphasizing the need to promote investor protection policies rather than launch business models built around the nascent technology.
Republicans on the House Agriculture Committee took issue with Gensler’s view, according to FIT21. reaps bipartisan support ahead of an upcoming vote.
.@GaryGenslerlast-minute foray into congressional action on bipartisan plan #FIT21 The legislation highlights the political nature of the SEC’s position. This cannot continue. Americans deserve more protections in digital asset markets. We can’t wait to pass #FIT21 Today.
– House Committee on Agriculture (@HouseAgGOP) May 22, 2024
The FIT21 bill’s journey does not end with a House vote. If passed, it will go to the U.S. Senate for further review. Scott Mason, senior policy advisor at Holland & Knight, told crypto.news that support from top Democrats could be crucial during this stage.
“Democratic leadership is not opposed to it, so if 50 or more than 75 Democrats vote for it, that sends a better signal to the Senate to act,” Mason said in a private memo.