Crypto Council for Innovation Calls for Clarity on Digital Asset Regulation in U.S.
Summary:
The Crypto Council for Innovation, representing around 60 companies, has urged U.S. lawmakers to approve the Financial Innovation and Technology for the 21st Century (FIT21) Act. The bill aims to provide clarity on the roles of regulatory bodies SEC and CFTC in managing digital assets. It highlights the need for regulation to keep pace with technological advances, an argument echoed by companies like Coinbase, Circle, and Kraken. The passage of the bill remains uncertain, as does whether President Biden, who is planning to veto another crypto-related bill, would sign it into law.
A plethora of cryptocurrency enterprises and advocacy organisations have implored U.S. legislators to endorse a bill that would delineate the duties of the nation's financial regulating bodies in relation to digital assets. The Crypto Council for Innovation (CCI), which represents roughly 60 companies, appealed to U.S. House of Representatives leadership in a letter dated May 16, to approve the bill titled H.R.4763, also known as the Financial Innovation and Technology for the 21st Century (FIT21) Act. This proposed legislation, approved by the House Financial Services Committee in July 2023, will provide a clearer demarcation of how digital assets are regulated by the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC).
The CCI acknowledged that the FIT 21 would impose new compliance requirements on digital assets businesses, but maintained that a clear regulatory environment is undoubtedly more accountable, safer for consumers, and preferable to the present situation. They pointed out the challenges that digital asset firms face abiding by laws nearly a century old, not developed with today's technological capabilities in mind.
Among the supporters of this plea were well-known companies such as Coinbase, Circle, Block, Kraken, Gemini. The advocacy group has also encouraged American citizens to show their support for the bill by reaching out to their representatives. Patrick McHenry, Chair of the House Financial Services Committee, suggested that FIT21 could be set for a full floor vote "this month" following deliberation within the rules committee. Several politicians, including Representative French Hill, have already indicated their support for the bill.
Previous actions by Congress include a resolution passed in the last ten days by the House and Senate to repeal an SEC rule on banks' handling of digital assets. The resolution saw bipartisan approval in both Congress chambers, although it faces potential veto by President Joe Biden. Senator and stalwart digital asset advocate, Cynthia Lummis, noted that this was Congress's first standalone crypto legislation of the session, leaving it uncertain whether similar action will be taken on FIT21.
As the U.S. heads deeper into an election year, the prospective enactment of these cryptocurrency bills is a crucial development. The most likely respective candidates for the Democratic and Republican parties, incumbent President Biden and ex-President Donald Trump, have consented to two debates scheduled for June 27 and September 10, where the subject of cryptocurrency could be brought up.
Published At
5/17/2024 7:55:00 PM
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