House of Representatives Prepares to Cast Decisive Votes on FIT21 Crypto Regulation Act
Summary:
The United States House of Representatives is poised to vote on the Financial Innovation and Technology for the 21st Century (FIT21) Act, intending to establish the regulatory roles of the US Commodity Futures Trading Commission and Securities and Exchange Commission over digital assets. Despite slow progress since its approval by the House Financial Services Committee in 2023, the bill has garnered support from various industry advocates. However, it remains uncertain whether the majority of lawmakers will endorse it. The potential influence of the 2024 elections on the vote is also noted.
This week, the US House Financial Services Committee's Republican members have assured that the House of Representatives will cast their votes on a bill aimed at defining the oversight of financial regulators on digital assets. On the 20th of May, the Republicans in the House stated that all House members would vote on the Financial Innovation and Technology for the 21st Century (FIT21) Act within the week, setting the stage for its potential legislation. This would provide clear guidelines on how digital assets are regulated by the US Commodity Futures Trading Commission (CFTC) and Securities and Exchange Commission (SEC).
The FIT21 bill, approved by the House Financial Services Committee in July 2023, hasn't experienced much progress thus far. In May, Committee Chair Patrick McHenry insinuated that the Rules Committee of the House could give the bill a green light for a full House vote. The bill has already amassed support from several industry advocates and House members, making it one of the rare crypto-centric legislations under consideration during this congressional session. President Joe Biden is also set to veto or approve in May a joint resolution aimed at overturning an SEC ruling about how banks should handle digital assets.
Blockchain Association and Crypto Council for Innovation, two crypto advocacy groups, have both urged the House leadership to back the FIT21 Act's passage. The former stated that the US needs "pro-innovation and pro-consumer safeguards." However, it remains uncertain whether the majority of the lawmakers will endorse the bill. Although the Republicans hold a narrow majority in the House, 21 Democrats rallied with them on May 8th to back the resolution to revoke the SEC accounting rule.
Crypto Council for Innovation's CEO, Sheila Warren, stated that "While FIT21 is not a flawless bill (no bill is!), it's a significant and historic move towards creating a federal regulatory framework for digital assets in the US."
The impending 2024 US elections, which have already kicked off with several state primaries, might also influence the lawmakers' decision to vote in favor or against the FIT21. As Election Day nears, several politicians, including Senator Elizabeth Warren, have emphasized their approach to regulating and overseeing digital assets. Representative McHenry, though not seeking re-election come November, will also participate in the bill's vote.
Published At
5/20/2024 9:12:14 PM
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