McHenry calls on Senate to approve FIT21 crypto bill prior to election

Outgoing Republican lawmaker Patrick McHenry has urged the Senate to pass an important bill on crypto regulation before the upcoming presidential election in November. The Financial Innovation and Technology for the 21st Century Act (FIT21) was approved by the House on May 22, with support from 71 Democrats and 208 Republicans. McHenry, the House Financial Services Chairman who will retire from Congress in January, emphasized the urgency of the Senate’s action during an interview with Bloomberg’s Balance of Power on May 30. The bill aims to classify most cryptocurrencies as commodities and subject them to regulation by the Commodity Futures Trading Commission (CFTC). The crypto industry sees the CFTC as a more crypto-friendly regulator compared to the Securities and Exchange Commission (SEC), although the SEC would still have authority over less decentralized cryptocurrencies. McHenry mentioned that the Senate was taken aback by the significant margin by which the FIT21 bill was passed in the House. Notably, both the SEC and President Joe Biden expressed opposition to the bill. McHenry stressed the importance of implementing regulated digital assets and cryptocurrencies in the United States. Democrat Majority Leader Chuck Schumer heads the Senate’s 48 Democrats, along with three independents, while the Republicans hold 49 seats. The Senate is not bound by any specific time frame to act on FIT21, but a majority vote of 51 senators is required for the bill to pass. McHenry revealed that he has been collaborating with Democratic Representative Maxine Waters for nearly two years to secure the passage of a stablecoin bill, acknowledging that it would need to be attached to a larger legislative package to gain Senate approval. He rejected the idea of linking the stablecoin bill to the SAFER Banking Act, which aims to provide greater financial services access to cannabis companies. McHenry expressed his opposition to the cannabis banking legislation and stated that Republicans would apply pressure to ensure that Schumer and the Senate prioritize the passage of a crypto bill. The U.S. presidential elections are scheduled for November 5.