The process of implementing the Financial Innovation and Technology for the 21st Century Act (FIT21) may be quite lengthy, potentially requiring months or even years of coordination among United States regulators before the rules take effect.
During a panel discussion at the 2024 Consensus event, Commissioner Summer Mersinger of the Commodity Futures Trading Commission (CFTC) predicted a slow regulatory process for the bill if it becomes law.
Mersinger highlighted that if legislation takes a long time to pass, the rulemaking process also takes a significant amount of time. She noted that there are still some Dodd-Frank rules that have not been finalized. The length of the process would depend on how Congress passes the legislation, according to Mersinger.
Once a bill becomes law, regulatory bodies like the Securities and Exchange Commission (SEC) and CFTC are responsible for enforcing the new rules. This involves drafting detailed regulations, allowing for a public comment period, and making revisions based on the feedback received. This phase can take several months or even years, as seen with the Dodd-Frank Wall Street Reform and Consumer Protection Act, which was signed into law in 2010.
The FIT21 bill, which clarifies regulatory responsibilities between the SEC and CFTC regarding digital assets, has successfully passed the House of Representatives with bipartisan support. It now faces its next challenges in the Senate. The Biden administration has expressed concerns about the bill, suggesting that there may be regulatory gaps that could impact market stability, although it has not explicitly stated whether it would veto the bill.
During the event discussion, SEC Commissioner Hester Pierce also commented on Congress’ interest in crypto legislation, stating that it is a response to the agency’s enforcement approach towards crypto firms. Pierce expressed her approval of Congress’ interest in crypto, stating that it serves as a reminder that the SEC has not effectively utilized the flexibility granted by Congress to consider how the law should apply to new and challenging aspects of the industry.
Source: Turner Wright/Cointelegraph
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