Lawmakers from the United States House Financial Services Committee have revealed their preparations for a full floor vote on the Financial Innovation and Technology for the 21st Century Act, also known as FIT21.
House Financial Services Committee Chair, Patrick McHenry, stated in a May 10 announcement that the FIT21 bill could be voted on by the full chamber “later this month” after being considered by the House Committee on Rules. The bill, which was passed by the committee in July 2023, aims to provide clarity on the regulatory roles of the U.S. Commodity Futures Trading Commission and the Securities and Exchange Commission in relation to digital assets.
Representative French Hill expressed his pride in the upcoming legislation, saying, “After working tirelessly across party lines and throughout the country over the past year to develop a clear, practical regulatory framework for digital assets, I am pleased that this groundbreaking legislation is reaching the House Floor. As demonstrated by the collapse of FTX, we need robust consumer protections and an effective regulatory framework to ensure the safety of the rapidly growing digital asset ecosystem for investors and consumers, while also positioning America as a leader in blockchain innovation.”
Republican lawmakers believe that the FIT21 bill would grant the CFTC additional authority over digital commodities and clarify the SEC’s role in relation to cryptocurrencies. This announcement followed a bipartisan vote in the House in favor of a resolution that overturned an SEC accounting rule for crypto that many criticized for imposing restrictions on banks.
It remains uncertain whether the crypto bill will receive sufficient support to pass the House. Representative McHenry stated that the decision to bring the legislation to a full floor vote was the result of “bipartisan efforts,” but the bill would still need to pass the Senate and be signed into law by President Joe Biden.
Sheila Warren, CEO of the Crypto Council for Innovation, commented on the updated bill language, stating, “Stakeholders now have the opportunity to assess the changes that have been made since the bill was reviewed by HFSC, Republicans, and Democrats last July and approved with bipartisan support. Although FIT21 is not a flawless bill (as no bill is), this represents a crucial and historic step towards establishing a federal regulatory framework for digital assets in the U.S.”
With the United States being in an election year, many lawmakers are emphasizing the need for regulation and oversight of digital assets as a campaign issue. In support of pro-crypto candidates in the upcoming 2024 elections, cryptocurrency exchange Coinbase’s Stand With Crypto initiative has launched a political action committee. Representative McHenry announced in December that he does not intend to run for reelection.
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