US House Financial Services Committee Prepares for Key Vote on FIT21 Crypto Bill
Summary:
The US House Financial Services Committee is planning a comprehensive vote on the Financial Innovation and Technology for the 21st Century Act, or FIT21, which aims to define regulatory responsibilities of the U.S. Commodity Futures Trading Commission (CFTC) and the SEC for digital assets. While the legislation has seen bipartisan efforts, it still needs approval from the Senate and the President to become law. This comes just ahead of the imminent US elections, where regulation and oversight of digital assets are becoming key campaign issues.
The United States House Financial Services Committee has disclosed their plans to carry out a comprehensive chamber vote for the Financial Innovation and Technology for the 21st Century Act, or FIT21. On May 10, Committee Chair Patrick McHenry revealed that the bill, approved by the committee in July 2023, could face a pivotal vote "later this month", following a review by the House Committee on Rules. FIT21 aims to demarcate the judicial responsibilities of the U.S. Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) in handling digital asset regulations.
Representative French Hill hailed the upcoming vote, applauding the crafting of a "clear, pragmatic regulatory framework for digital assets" through cross-party collaboration and after the distressing downfall of FTX. He emphasized the crucial need for robust consumer safeguards and a sound regulatory infrastructure to ensure the fast-growing digital asset ecosystem's safety for investors while also securing America's position as a global leader in blockchain innovation.
According to Republican legislators, FIT21 will extend the CFTC's jurisdiction over digital commodities while demarcating the SEC's domain over cryptocurrencies. This move follows a bipartisan consensus in the House that knocked down an SEC cryptocurrency accounting rule perceived by many as imposing unwarranted restrictions on banks.
Yet, it remains uncertain whether FIT21 will garner adequate support to achieve House approval. Although Patrick McHenry acknowledged the "bipartisan efforts" marking the legislation's journey to a full floor vote, the act must still secure Senate approval and President Joe Biden's endorsement to become law.
Crypto Council for Innovation's CEO, Sheila Warren, noted that despite no legislation being flawless, FIT21 marks a significant step towards setting up a federal regulatory framework for digital assets in the U.S. The imminent elections in the U.S. have many politicians advocating for enhanced regulation and oversight of digital assets as key campaign issues. Coinbase's Stand With Crypto initiative recently unveiled its political action committee designed to back pro-cryptocurrency contenders in the 2024 race. Notably, Patrick McHenry announced last December his decision not to pursue reelection.
Published At
5/10/2024 11:25:53 PM
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