Numerous legislators in the United States House of Representatives are showing their support for a bill that aims to clarify the responsibilities of the country’s financial regulators in relation to digital assets. This bill is scheduled for a floor vote on May 22.
Representative Wiley Nickel took the opportunity to address his fellow lawmakers on May 21, urging them to back the passage of the Financial Innovation and Technology for the 21st Century (FIT21) Act. The primary objective of this bill is to establish clear guidelines for the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission in their regulation of cryptocurrencies. Nickel believes that this legislation will help prevent incidents similar to what happened with FTX.
Nickel pointed out that Congress has never voted on a regulatory framework specifically designed for cryptocurrencies, and instead, they have been operating under outdated securities laws that are over a century old.
Nickel specifically called upon both Democrats and Republicans to vote in favor of the FIT21 bill, highlighting the fact that it has received support from both sides of the aisle. Although reports have indicated that Democratic leadership is strongly against the crypto bill, they have decided not to actively discourage their members from voting for it. Additionally, sources familiar with the matter have suggested that former House Speaker Nancy Pelosi is likely to support FIT21.
The main purpose of the FIT21 bill is to limit the SEC’s authority to regulate crypto firms through enforcement actions, a practice that has faced criticism from many quarters. The SEC has previously filed lawsuits against several cryptocurrency companies, including Ripple, Kraken, Coinbase, Binance, and individuals associated with them.
The House Committee on Rules is scheduled to discuss the FIT21 bill, also known as H.R. 4763, on May 21 at 4:00 pm ET, with a full floor vote anticipated on the following day. This vote comes after the House and Senate approved one of the first pieces of legislation focused on cryptocurrencies. This legislation aims to overturn an SEC rule that requires banks to hold customers’ digital assets on their balance sheets, with corresponding capital reserves. President Biden has expressed his intention to veto this resolution.
It is evident that law enforcement agencies in the United States are intensifying their efforts to combat crypto-related crimes.