Key Takeaways:
- The House of Representatives will vote on the Financial Innovation and Technology for the 21st Century (FIT21) Act this week, aiming to clarify the roles of the CFTC and SEC in regulating digital assets.
- The FIT21 Act, supported by industry advocates, seeks to establish clear regulatory guidelines for digital assets, but its passage remains uncertain.
- Political dynamics, including the upcoming 2024 elections and Representative McHenry’s impending retirement, may influence the vote on FIT21.
Republican lawmakers on the House Financial Services Committee have announced that the House of Representatives will vote on the Financial Innovation and Technology for the 21st Century (FIT21) Act this week.
This bill aims to clarify the roles of the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) in regulating digital assets.
This week, @HouseGOP will take action to protect consumers and foster innovation with two landmark digital asset bills, including:
— Financial Services GOP (@FinancialCmte) May 20, 2024
☑️ The bipartisan Financial Innovation and Technology for the 21st Century (FIT21) Act
☑️ @GOPMajorityWhip's CBDC Anti-Surveillance State Act
The legislation, which moved out of committee in July 2023, has been relatively stagnant.
However, in May, Committee Chair Patrick McHenry indicated that the House Committee on Rules could clear it for a vote in the full chamber.
If passed, the FIT21 Act will provide clear regulatory guidelines for digital assets.
Several industry advocates and House members have already shown support for the bill, which is among the few crypto-focused pieces of legislation moving through Congress this session.
President Joe Biden is expected to either veto or sign into law a joint resolution passed in May to overturn an SEC rule on how banks should handle digital assets.
1/ With the consensus of our membership, BA is supportive of a floor vote for the Financial Innovation and Technology for the 21st Century Act (#FIT21) – a bill that establishes a new regulatory framework for the digital asset industry.https://t.co/wr3WdINEWN
— Blockchain Association (@BlockchainAssn) May 16, 2024
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Crypto advocacy groups, including the Blockchain Association and the Crypto Council for Innovation, have urged House leadership to support the passage of FIT21, citing the need for “pro-innovation and pro-consumer guardrails.”
Despite this, it remains uncertain if a majority of lawmakers will vote in favor of the bill. Although Republicans hold a slim majority in the House, 21 Democrats joined them on May 8 to support a resolution nullifying an SEC accounting rule.
12/ While FIT21 is not a perfect bill (no bill is!), this is a critical and historic step toward establishing a federal regulatory framework for digital assets in the US. @crypto_council stands ready to work with members of Congress from both parties (and both chambers) on the…
— Sheila Warren (@sheila_warren) May 10, 2024
“While FIT21 is not a perfect bill (no bill is!), this is a critical and historic step toward establishing a federal regulatory framework for digital assets in the U.S.,” said Crypto Council for Innovation CEO Sheila Warren.
Political considerations might also influence the vote on FIT21.
As the 2024 elections approach, lawmakers’ positions on digital asset regulation are coming into focus.
Representative McHenry, who will vote on the bill, does not intend to run for reelection in November.
About The Author
Victor Fawole, a seasoned Web3 content creator and social media influencer, excels in bringing the pulse of the crypto world to our readers.
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