Lawmakers from the United States House Financial Services Committee have revealed their preparations for a comprehensive vote on the Financial Innovation and Technology for the 21st Century Act, also known as FIT21.
In an announcement made on May 10, Patrick McHenry, Chair of the House Financial Services Committee, stated that the full chamber could potentially vote on the FIT21 bill “later this month,” following consideration in the House Committee on Rules. The bill, which was approved by the committee in July 2023, aims to clarify the regulatory roles of the U.S. Commodity Futures Trading Commission and the Securities and Exchange Commission in relation to digital assets.
Representative French Hill expressed his pride in the upcoming legislation, stating, “After tirelessly working across party lines and throughout the country over the past year to craft a clear and practical regulatory framework for digital assets, I am pleased to see this groundbreaking legislation coming to the House Floor. As the collapse of FTX demonstrated, we need robust consumer protections and an effective regulatory framework to ensure the safety of the rapidly expanding digital asset ecosystem for investors and consumers, while also securing America’s position as a leader in blockchain innovation.”
According to Republican lawmakers, the FIT21 bill would grant the CFTC increased authority over digital commodities and provide clarification on the SEC’s jurisdiction over cryptocurrencies. This announcement followed a bipartisan vote in the House in favor of a resolution that rejected an SEC accounting rule concerning crypto, which many criticized for imposing limitations on banks.
The passage of the crypto bill in the House remains uncertain. Representative McHenry stated that the legislation’s advancement to a full floor vote was the result of bipartisan efforts. However, the bill would still need to pass the Senate and be signed into law by President Joe Biden.
Sheila Warren, CEO of the Crypto Council for Innovation, stated, “Stakeholders now have access to updated bill language, allowing them to assess the changes made since the bill was first reviewed by HFSC and received bipartisan approval last July. While FIT21 may not be a flawless bill (as no bill is), this represents a critical and momentous step toward establishing a federal regulatory framework for digital assets in the United States.”
As the United States enters an election year, many lawmakers continue to advocate for the regulation and oversight of digital assets as a key campaign issue. In 2024, cryptocurrency exchange Coinbase’s Stand With Crypto initiative launched a political action committee to support pro-crypto candidates. Representative McHenry confirmed in December that he does not intend to seek re-election.
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