The U.S. House of Representatives approved the FIT21 bill with a majority of 279 to 136 and submitted it to the Senate.
The initial approval of the Financial Innovation and Technology Act of the 21st Century (FIT21) could have a major impact on the cryptocurrency market, signaling optimism across the market. This bill is an important step toward comprehensive regulation of digital assets in the United States and will potentially shape the future of cryptocurrency trading and investing.
What is FIT21?
The FIT21 bill, authored by the House Agriculture Committee and the House Financial Services Committee, aims to clarify how the SEC classifies cryptocurrencies by creating a “digital product” term for digital assets.
The main goals of the bill are to clarify the SEC’s regulatory role, improve consumer protection, and create a stable environment for digital asset innovation. It aims to eliminate fraud, regulate cryptocurrency exchanges, and protect consumers. Going up for a vote, the bill had bipartisan support.
Scott Mason, senior policy advisor at Holland & Knight, told crypto.news: “FIT21 is certainly an opportunity to provide confidence to the cryptocurrency/blockchain industry that the US is a friendly market… Follow the EUR and other countries that are aggressively attracting industrial investment.”
verdict
The House proceedings got off to a slow start after Representative Jim McGovern made comments about former President Donald Trump. Republicans demanded that McGovern “delete his words.” This mechanism may be invoked during debates in the House of Commons, in Committees of the Whole or in Standing and Select Committees of the House of Commons.
The standoff over the issue lasted more than an hour before proceedings continued. McGovern later tweeted that he had been banned from speaking on the House Floor.
After these events, the bill passed the committee by a vote of 204 to 203 before final debate. During the final debate, Representative Patrick McHenry cited FIT21’s support, saying the bill: ““It will solidify America’s global leadership in technological innovation, invention, and adoption.”
In this vote, 279 votes were in favor, 136 were against, and 71 Democratic lawmakers voted in favor of the bill.
“This vote represents years of tireless work by policymakers, employees, and industry to protect consumers and keep America at the forefront of digital innovation. This is proof that innovation and consumer protection can coexist in the digital asset space. “71 Democrats voted in favor of keeping technology a bipartisan issue.” Sheila Warren, CEO of the Cryptocurrency Innovation Council, said in a memo obtained by crypto.news.
What are your future plans?
Earlier Wednesday, the White House publicly opposed the bill, citing its lack of a regulatory framework for digital assets. Nonetheless, the Biden administration has expressed its willingness to work with lawmakers to create clear cryptocurrency legislation and has said it will not veto the bill.
The journey of the FIT21 bill does not end with a vote in the House. If passed, it will move to the U.S. Senate for further consideration. The House of Representatives also voted and passed a bill that would explicitly ban the issuance of CBDCs by the U.S. Federal Reserve.