U.S. House Passes Crypto FIT21 Legislation with Strong Democratic Support
In a significant victory for the cryptocurrency industry, the U.S. House of Representatives has voted 279-136 in favor of the Financial Innovation and Technology for the 21st Century Act (FIT21). The bill aims to establish regulatory frameworks for digital asset markets and represents the industry’s most significant legislative accomplishment in Congress to date.
Notably, the passage of the bill saw a wave of support from House Democrats, with several crossing party lines to vote in favor. This bipartisan nature of the approval highlights the growing recognition of the need for crypto regulations in the United States.
While this is an important milestone for the crypto industry, the bill’s future remains uncertain as it now moves to the U.S. Senate. Unlike the House, there is no counterpart bill in the Senate, and support for such legislation is not yet clear. Additionally, the committees in the Senate have not undertaken the same level of work on crypto regulations, adding further ambiguity to the bill’s fate.
The U.S. has lagged behind other jurisdictions in establishing comprehensive crypto regulations, and the passage of the FIT21 bill represents a significant step forward. However, there is still much work to be done to implement effective oversight and consumer protections in the industry.
Supporters of the bill argue that it provides much-needed “rules of the road” for the crypto market. Representative Josh Gottheimer (D-N.J.), an advocate for the legislation, highlights its bipartisan nature and emphasizes the importance of collaboration to ensure its successful implementation.
The vote breakdown in the House reveals that 208 Republicans and 71 Democrats voted in favor of the bill, while 133 Democrats and 3 Republicans opposed it. Despite the bill’s approval, President Joe Biden expressed opposition to the legislation in a policy statement. However, he did not indicate that he would veto the bill, as he had done recently with a different crypto-related bill.
The FIT21 legislation, primarily driven by House Republicans, aims to establish a regulatory framework for the U.S. crypto markets. Key provisions include consumer protections, the designation of the Commodity Futures Trading Commission (CFTC) as a leading regulator for digital assets, and a clearer definition of crypto tokens as securities or commodities.
Opponents of the bill, including Representative Maxine Waters (D-Calif.), argue that it grants leniency to crypto businesses that have previously evaded securities laws. Waters asserts that these businesses have profited unlawfully from issuing or facilitating the trading of crypto securities, and claims that legalizing these activities would reward their illegal behavior.
Leading up to the House vote, several amendments were proposed, with one amendment regarding crowdfunding exemptions being defeated. However, the rest of the amendments found support among the lawmakers and were adopted.
While the approval of the FIT21 bill by the House is a significant accomplishment, its future in the Senate remains uncertain. The industry will closely monitor the Senate’s response and continue advocating for comprehensive crypto regulations to ensure the long-term growth and stability of the digital asset markets in the United States.