Republican lawmakers in the House Financial Services Committee of the United States have announced that the House of Representatives will vote on legislation this week to clarify the roles of financial regulators in relation to digital assets. The legislation, known as the Financial Innovation and Technology for the 21st Century (FIT21) Act, aims to provide clarity on how the U.S. Commodity Futures Trading Commission (CFTC) and Securities and Exchange Commission (SEC) regulate digital assets.
The FIT21 bill was passed by the House Financial Services Committee in July 2023 but has since seen little progress. However, Committee Chair Patrick McHenry stated in May that the House Committee on Rules could soon clear the bill for a vote in the full chamber.
Various industry advocates and House members have expressed their support for the bill, making it one of the few pieces of crypto-focused legislation to advance through Congress this session. Additionally, President Joe Biden is expected to either veto or sign into law a joint resolution passed in May that overturns an SEC rule regarding the handling of digital assets by banks.
The Blockchain Association and Crypto Council for Innovation, two crypto advocacy groups, have called on House leadership to support the passage of FIT21. They argue that the U.S. needs “pro-innovation and pro-consumer guardrails.” However, it remains uncertain whether the bill will receive majority support from lawmakers. While Republicans currently hold a slim majority in the House, 21 Democrats joined them in May to support the resolution nullifying the SEC accounting rule.
Sheila Warren, CEO of the Crypto Council for Innovation, commented that while FIT21 may not be perfect, it represents a significant step towards establishing a federal regulatory framework for digital assets in the U.S.
Political considerations may also impact lawmakers’ voting decisions on FIT21, as the 2024 U.S. elections are underway. Some lawmakers, including Senator Elizabeth Warren, have emphasized their approach to regulating and overseeing digital assets as Election Day approaches. Representative McHenry, who will be voting on the bill, has stated that he does not plan to seek reelection in November.