The crypto industry is urging the House to pass the important FIT21 bill next week, which aims to provide clear U.S. regulations and keep the country competitive globally.
The FIT21 bill, which seeks to create a thorough U.S. regulatory system for digital assets, will be voted on next week. The crypto sector is calling on House leaders to support this vital bill. Many industry figures have written to top lawmakers in the House of Representatives, advocating for the Financial Innovation and Technology for the 21st Century Act.
With the House ready to vote, the letter highlights that passing the bill would help the U.S. remain competitive worldwide. This vote is a significant moment for the U.S. cryptocurrency industry, potentially bringing long-needed regulation. Leading groups and businesses, including Coinbase, Kraken, and Andreessen Horowitz, have written to Speaker of the House Mike Johnson (R-La.) and Minority Leader Hakeem Jeffries (D-N.Y.), urging them to approve the bill. The FIT21 bill is scheduled for a vote next week, with a decision expected mid-week.
The bill designates the CFTC as the main regulator for digital assets, clarifying its role compared to the SEC’s. It aims to set up consumer protections, such as rules for holding customers’ assets and handling them in bankruptcy, and to put in place measures against risky behavior.
”Passing this bill can boost blockchain technology and digital assets, promoting financial inclusion and protecting national security,” the letter states. ”It is crucial for the U.S. to maintain its leadership in financial innovation.”
The crypto industry is hopeful in Washington, recently seeing both the House and Senate pass a resolution overturning an SEC crypto accounting policy, although President Joe Biden has promised to veto it. This move to overturn the SEC’s Staff Accounting Bulletin 121 (SAB 121) was a big win for the industry, gaining support from many Democratic lawmakers who have typically been more cautious than Republicans in backing crypto.
In the recent policy fight, over one in five Senate Democrats sided with the industry, including Majority Leader Chuck Schumer (D-N.Y.), and about one in ten Democrats in the House supported the effort. However, the comprehensive legislation now nearing a House vote is of much greater importance. Key Senate Democrats have yet to show a willingness to match the House’s effort. So far, the Senate has only shown interest in a different crypto bill regulating stablecoin issuers, as part of a broader financial legislative package.
Rep. Patrick McHenry (R-N.C.), chairman of the House Financial Services Committee where the bill started, said that Democratic support for FIT21 in the House could be crucial in encouraging the Senate. When the measure passed his committee, a few Democrats supported it despite opposition from senior member Rep. Maxine Waters (D-Calif.).
On its way to the floor, the FIT21 effort included various amendments requested by the House Rules Committee to meet a May 16 deadline.
The crypto industry’s support for FIT21 shows its desire for clear regulation in the U.S. The bill’s passage is seen as essential for maintaining the U.S.’s leadership in financial innovation and ensuring the growth and stability of the digital asset market. As the House prepares for the upcoming vote, the outcome will be closely watched by industry stakeholders and policymakers, as it represents a significant step toward establishing comprehensive crypto regulation in the U.S.
Featured image from: coinpaprika.com