The U.S. House of Representatives is on the cusp of making history by voting in favor of a crypto market structure bill, marking a significant milestone in the country’s digital asset regulatory landscape.
A New Era for Crypto Regulation
The Financial Innovation and Technology for the 21st Century Act, also known as FIT21, is poised to grant the U.S. Commodity Futures Trading Commission (CFTC) greater authority over digital assets deemed to be commodities. This move would create new jurisdictional lines for the Securities and Exchange Commission (SEC), providing a framework for crypto companies and digital asset issuers to determine whether and how their assets are securities.
“We need blockchain innovation here in America.” - Rep. Ro Khanna (D-Calif.)
A Bipartisan Effort
The bill is expected to pass with a bipartisan majority, with a handful of Democrats joining a majority of Republicans in voting in favor of the legislation. While the bill’s path through the Senate is less clear, the White House has expressed opposition to the legislation, although President Joe Biden did not threaten a veto.
Support and Opposition
Rep. Jim Himes (D-Conn.) expressed his support for the bill, stating that it is “an important step forward in the regulation of the cryptocurrency industry and a meaningful improvement on the status quo.” On the other hand, Rep. Maxine Waters (D-Calif.) dubbed the bill the “not fit for purpose act,” citing concerns that it would deregulate certain derivatives products and fail to provide adequate oversight.
The future of crypto regulation hangs in the balance.
Industry Reaction
The bill has sparked a heated debate within the crypto industry, with some arguing that it would provide much-needed clarity and others expressing concerns that it would create loopholes for fraud and manipulation. A group of unions, consumer protection organizations, academics, and others sent a public letter to House Speaker Michael Johnson (R-La.) and Minority Leader Hakeem Jeffries (D-N.Y.) urging them to vote against the bill.
The crypto industry is watching closely as the bill makes its way through Congress.
A New Era for Crypto
As the crypto industry continues to evolve, one thing is clear: regulation is coming. The question is, what form will it take? Will FIT21 pave the way for a more permissive regulatory environment, or will it create unintended consequences that could harm the industry? Only time will tell.
The future of crypto hangs in the balance.
