Report: Nancy Pelosi Considering Backing GOP’s FIT21 Cryptocurrency Legislation

Nancy Pelosi, the former Speaker of the United States House of Representatives, is reportedly considering backing the Financial Innovation and Technology for the 21st Century Act (FIT21), a crypto bill led by Republicans. According to sources familiar with her thoughts, Pelosi, who is no longer part of the Democratic Party leadership, may support the bill, which is expected to be voted on by the House on May 22nd. FIT21 aims to clarify the division of authority over crypto assets between the Commodity Futures Trading Commission and the Securities and Exchange Commission. If passed, the bill would also modify the Howey test, a legal standard for determining securities, and reduce the SEC’s oversight of cryptocurrencies. The crypto industry has embraced FIT21, as it provides a clearer regulatory framework for digital assets. However, some financial reform groups and anti-crypto Democrats argue that the bill would undermine decades of financial regulations in favor of the crypto industry. Despite opposition from ranking Democrats Maxine Waters and David Scott, leaked emails suggest that they will not pressure House Democrats to vote against the bill. Pelosi’s reported support for the pro-crypto bill is seen as the Democrats’ latest attempt to appeal to pro-crypto voters, following speculation of a potential reversal by the SEC on approving spot Ether (ETH) funds. While some view super PACs, which can raise unlimited funds to support pro-crypto candidates, as a threat, others argue that supporting FIT21 is necessary to prevent the SEC from politicizing cryptocurrency regulation.