The cryptocurrency industry achieved a historic milestone on Wednesday when the U.S. 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 279 to 136 with bipartisan support. This is an important step towards legal clarity in the cryptocurrency space.
FIT21 has strong support from lawmakers and industry leaders.
With 71 Democrats joining 208 Republicans, the passage signals a growing consensus on the need for clear cryptocurrency regulation. The bill, introduced in July 2023, aims to define the roles of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) in cryptocurrency oversight. It also sets guidelines for various aspects of the cryptocurrency market, including token issuance, trading, and storage.
Several lawmakers expressed strong support for passage of the bill. Representative John Rose emphasized the need to move away from enforcement-based regulation.
“I have met with enough Biden administration officials to regulate through enforcement. That’s why I support FIT21, legislation to prevent governments from hindering digital transformation. “This bill contains important guardrails that protect consumers and foster innovation.” Representative Rose said.
Representative Wiley Nickel also emphasized the importance of establishing a modern regulatory framework that recognizes the unique characteristics of digital assets.
“FIT21 provides a clear regulatory framework for digital assets, rather than relying on 90-year-old securities laws enacted before the internet existed. That’s a big deal. “Whether you like cryptocurrencies or not, you should support regulation.” Nickel Representative decided.
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Industry leaders shared this enthusiasm. Ripple CEO Brad Garlinghouse praised the bipartisan support for FIT21 and criticized the SEC’s approach to cryptocurrency regulation.
“Today more than ever, we see what political liability Gensler brings to the Biden administration. That’s why we saw 71 Democrats cross the aisle to support FIT21. “We are only just getting started!” Garling House wrote On his X (Twitter) account.
Jake Chervinsky, Variant’s Chief Legal Officer, also shared his perspective on the bill’s passage. He sees this as a vote of no confidence in the SEC’s current stance on cryptocurrencies.
“There are 71 House Democrats who voted in favor of this bill. This is a huge number of elected Democrats who have now voted ‘no confidence’ in the SEC, sending a message to the Biden administration that being ‘anti-crypto’ is a losing platform this year. ,” that said.
Despite significant progress in the House, FIT21 faces an uncertain future in the Senate. There is currently no corresponding legislation.
Moreover, the necessary committees have not yet engaged in the same level of work on cryptocurrencies. This makes the way forward less certain.
However, the White House expressed opposition to the bill, citing concerns about protecting consumers and investors. The Administration acknowledges the need for a regulatory framework for digital assets. However, they believe that FIT21, in its current form, needs additional safeguards.
“The administration looks forward to continued collaboration with Congress to develop legislation for digital assets that includes appropriate guardrails for consumers and investors while creating the conditions necessary for innovation,” the White House said. “This collaboration will likely require more time.” I wrote:
However, President Joe Biden’s statement made no mention of the veto threat. This contrasts with his stance on another cryptocurrency-related bill, Staff 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 it weakens SEC oversight and warned it could increase investor risk and harm U.S. markets.
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Despite opposition, this passage marks a pivotal moment in ongoing efforts to provide clear regulation for the cryptocurrency industry in the United States. With the FIT21 bill now in the hands of the Senate, the industry is watching closely to see if it becomes law. Nonetheless, these developments will potentially change the regulatory landscape for digital assets in the United States.
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