US House to Vote on FIT21 Act Deciding Future of Crypto Regulation
Summary:
U.S. Representatives are showing support for the Financial Innovation and Technology for the 21st Century (FIT21) Act, a bill promising to clarify the roles of the country's financial regulatory bodies in handling digital assets. This legislation could restrict the SEC's criticized "regulation by enforcement" approach towards crypto firms and requires a full floor vote scheduled on May 22. Meanwhile, enforcement agencies are stepping up their efforts to curb crypto-related crime.
Numerous members of the US House of Representatives are displaying their backing for a legislative proposal aimed at precisely defining the roles of the nation's financial watchdogs when it comes to digital currencies. This comes ahead of a full floor vote set for May 22. Congressman Wiley Nickel from North Carolina, speaking on the House floor on May 21, urged his colleagues to endorse the Financial Innovation and Technology for the 21st Century (FIT21) Act. The proposed law would delineate how the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission oversee cryptocurrencies and could, as per Congressman Nickel, "avert another FTX incident."
He said, "The Congress has yet to cast a vote on a regulatory framework for cryptocurrencies. Actually, we rely on securities law that's a century old." A YouTube source shows. Urging both Democrats and Republicans to vote for the FIT21 Act, Nickel stressed that it was forged with cross-party support. Reports indicate that though Democratic leadership is vehemently against the crypto bill, they will not marshal votes in opposition to it. On May 21, The American Prospect reported former Speaker of the House Nancy Pelosi's endorsement of FIT21, based on sources privy to her thought process.
The proposed law would curtail the SEC's ability to persist its criticized "regulation by enforcement" strategy towards crypto firms. The SEC has so far sanctioned several crypto businesses, including Ripple, Kraken, Coinbase, and Binance, as well as affiliates associated with these firms.
"The SEC has converted crypto regulation into a political battleground, consequently compelling President [Joe] Biden to pick a stand on a matter that resonates with many Americans," Nickel said.
The House Committee on Rules has scheduled a discussion on the FIT21 Act (H.R. 4763) for 4:00 pm ET on May 21, with a comprehensive floor vote planned on the subsequent day. This decision follows the passage of one of the first crypto-concentrated legislations in the House and Senate. It calls for the overturning of an SEC rule that mandated banks to hold clients' digital assets on their balance sheets, duly backed by capital. On May 8, President Biden voiced his intention to veto this resolution. As reported in the press, US enforcement agencies are intensifying their campaign against crime related to cryptocurrencies.
Published At
5/21/2024 9:51:24 PM
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