The US House of Representatives I just passed the Financial Innovation and Technology for the 21st Century (FIT21) Act, marking a significant milestone in crypto regulation.
What's the scoop?
- The House voted 279-136 to approve the bill, with 71 Democrats joining 208 Republicans in favor.
- FIT21 aims to regulate the digital asset market and would allow the Commodity Futures Trading Commission (CFTC) to become a key regulator alongside the Securities and Exchange Commission (SEC). The bill also includes consumer protections and provisions relating to stablecoins and anti-money laundering processes.
- Prominent Democrats, including former House Speaker Nancy Pelosi, have supported the bill, underscoring the rising bipartisan tide around crypto regulation.
- Several amendments were considered, only those from Representatives Brittany Pettersen (D-Colorado) and Ralph Norman (R-S.C.) were adopted. Pettersen's amendment extends the Bank Secrecy Act to digital assets, while Norman's amendment requires a study of foreign-owned digital asset companies.
Taken without a bank:
The FIT21 legislation now heads to the U.S. Senate, where its future is uncertain due to the lack of a companion bill and unclear support. Even if FIT21 were to pass the upper house of Congress, it would still be subject to a potential veto by President Biden, who has been criticism of the bill but has not yet confirmed any veto plans.
No matter what happens, this is the first major crypto bill without a resolution approved by the U.S. House of Representatives, marking a major political victory for the crypto industry. Passage of the bill's first hurdle coincides with a seemingly thawing regulatory environment in the United States, as shown Ethereum ETF appear close to approval and the Senate recently repealed a SEC Backed Crypto Rule.
If FIT21 do If investors have their way in the Senate, a new era of more sensible U.S. crypto regulation would be decidedly within reach.
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