Two pro-crypto bills will not coerce House Democrats into voting against them

Members of the Democratic Party in the United States House of Representatives will not be compelled to vote against two bills related to cryptocurrency. However, they have been strongly encouraged to do so. An email sent by Democrat Party leaders on May 20, which was shared by Politico, revealed that the party did not advise members to vote against the Financial Innovation and Technology for the 21st Century (FIT21) Act and the CBDC Anti-Surveillance State Act — H.R. 4763 and H.R. 5403, respectively. Both bills have been seen as beneficial for the cryptocurrency industry if they are passed. The FIT21 Act would establish a clearer process for determining whether a cryptocurrency is a commodity or a security and would give regulatory control of the sector to the U.S. Commodity Futures Trading Commission (CFTC). The U.S. cryptocurrency industry and lobbyists have supported the bill, with 60 companies calling for its passage in a letter sent on May 16. On the other hand, the CBDC act would prevent the Federal Reserve from issuing a central bank digital currency. However, the email noted that Representatives Maxine Waters and David Scott “strongly oppose” the FIT21 Act and Waters opposes the CBDC act. Politico later obtained a letter from the pair urging a vote against the FIT21 Act. The email from Democratic Party leaders expressed concerns about certain aspects of the bill, including its impact on the secondary market for digital commodities and its potential to weaken investor protections and enable fraud and market manipulation. The CBDC Anti-Surveillance State Act was also criticized by Democrat leaders, who argued that it would impede the “primacy of the U.S. dollar” and hinder the Federal Reserve’s ability to conduct monetary policy. The FIT21 Act is expected to be debated and passed on May 22.