The U.S. House of Representatives has taken a monumental move towards regulating the cryptocurrency industry by passing the Financial Innovation and Technology for the 21st Century Act (FIT21).
The bill, which aims to grant more oversight and funding to the Commodity Futures Trading Commission (CFTC) over crypto spot markets and “digital commodities,” particularly Bitcoin, was approved by a vote of 279 to 136. Notably, seventy-one Democrats supported the bill, including former Speaker Nancy Pelosi.
FIT21 includes several key provisions designed to enhance the regulatory framework for cryptocurrencies. These provisions grant the CFTC increased power and funding to oversee crypto markets, establish new guidelines for stablecoins, and implement strengthened anti-money laundering measures. This comprehensive approach aims to provide clearer rules and greater security within the rapidly evolving crypto sector.
However, the bill’s passage in the Senate remains uncertain, with prominent crypto critics like Senator Elizabeth Warren voicing their opposition.
Despite the Senate’s recent resolution to kill a rule restricting banks and crypto firms, indicating a complex legislative landscape, FIT21 could still face months of reviews, hearings, and markups before reaching a final vote.
Any differences between House and Senate versions must be reconciled, followed by a final approval from both chambers. President Biden will then have ten days to sign or veto the bill. If vetoed, Congress can override the veto with a two-thirds majority vote in both chambers.
The industry’s response to the House’s approval of FIT21 has been resoundingly positive. Coinbase CEO Brian Armstrong hailed the bill’s passage as a “total victory” and a significant stride towards establishing clear regulations for the crypto industry. Jake Chervinsky of Variant Fund highlighted the substantial Democratic support for the bill, indicating a shift in confidence from the current SEC approach to crypto regulation.
This widespread approval from industry leaders and experts instills confidence in the potential positive impact of FIT21 on the cryptocurrency market.
As the bill transitions to the Senate, its journey could potentially reshape the regulatory framework for cryptocurrencies in the United States. The industry and lawmakers will closely monitor the Senate’s actions and potential amendments to FIT21. The Senate’s role in this process is crucial, and its decisions will profoundly impact the future of cryptocurrency regulation in the country. Stay tuned for more updates on this evolving story.
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