Several cryptocurrency companies and advocacy groups have called on United States lawmakers to support legislation that would clarify the roles of financial regulators in overseeing digital assets. In a letter sent to the U.S. House of Representatives leadership on May 16, approximately 60 firms represented by the Crypto Council for Innovation (CCI) urged lawmakers to pass the Financial Innovation and Technology for the 21st Century (FIT21) Act, also known as H.R.4763. The bill, which was approved by the House Financial Services Committee in July 2023, aims to provide clear guidelines on how the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) regulate digital assets.
The CCI emphasized the need for regulatory clarity, stating that while the FIT21 Act may introduce new compliance challenges for digital asset companies, it is essential for the safety of consumers and preferable to the current uncertain regulatory environment. Currently, digital asset firms are required to comply with U.S. securities laws that were formulated nearly a century ago, without considering the technological advancements of today, such as the speed of internet transactions.
Notable companies such as Coinbase, Circle, Block, Kraken, Gemini, and Stand With Crypto were among the signatories of the letter. The advocacy group called on U.S. voters to contact their representatives and express support for the FIT21 Act.
Patrick McHenry, Chair of the House Financial Services Committee, stated that the FIT21 bill could be ready for a full floor vote later this month, following its consideration in the rules committee. If passed, lawmakers would have approximately five days in session before June to discuss the bill. Many legislators, including Representative French Hill, have already expressed their intention to vote in favor of the legislation.
The passage of a resolution in the House and Senate, overturning an SEC rule on how banks handle digital assets, has set the stage for potential changes in digital asset regulation. Despite receiving bipartisan support in Congress, U.S. President Joe Biden has indicated his plans to veto the resolution.
Senator Cynthia Lummis, a digital asset advocate, noted that the resolution was the first standalone crypto legislation to be passed this session of Congress. It remains uncertain whether lawmakers will follow suit in passing the FIT21 Act. The White House has not provided any indication as to whether President Biden would promptly sign the bill into law if it is approved by both the House and Senate.
These potential developments in crypto legislation coincide with the United States entering an election year. President Biden and former President Donald Trump, the presumptive candidates for the Democratic and Republican Parties in 2024, have agreed to participate in two debates on June 27 and September 10, where crypto could be a topic of discussion.