Several cryptocurrency companies and advocacy groups have called on United States lawmakers to pass legislation that clarifies the roles of financial regulators in overseeing digital assets. The Crypto Council for Innovation (CCI), representing approximately 60 firms, sent a letter on May 16 to the U.S. House of Representatives leadership, urging them to support H.R.4763, also known as the Financial Innovation and Technology for the 21st Century (FIT21) Act. This bill, which was approved by the House Financial Services Committee in July 2023, aims to provide clear guidelines for the regulation of digital assets by the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC).
The CCI emphasized the importance of regulatory clarity in their letter, acknowledging that the FIT21 Act may introduce new compliance challenges for digital asset companies. They argued that although complying with U.S. securities laws designed almost a century ago is currently required, it fails to consider the technological advancements of today, such as the speed of internet transactions. The CCI believes that updating the regulatory framework is crucial for the responsible and safe development of the digital asset industry.
Notable companies such as Coinbase, Circle, Block, Kraken, Gemini, and Stand With Crypto were among the signatories of the letter. The advocacy group encouraged U.S. voters to contact their representatives and express support for the FIT21 Act.
Patrick McHenry, the Chair of the House Financial Services Committee, stated that the FIT21 bill could be ready for a full floor vote later this month after being reviewed by the rules committee. If approved, lawmakers would have approximately five days in session before June to vote on the legislation. Representative French Hill and many other lawmakers have already expressed their intention to vote in favor of the bill.
In recent days, both the House and Senate passed a resolution to overturn an SEC rule concerning the handling of digital assets by banks. Although the legislation received bipartisan support in Congress, U.S. President Joe Biden stated his plan to veto it.
Senator Cynthia Lummis, a digital asset advocate, noted that this resolution marked the first instance of standalone crypto legislation being passed in this session of Congress. It remains uncertain whether FIT21 will receive similar support. The White House has not indicated whether President Biden would sign the bill into law immediately upon its passage in the House and Senate.
As the United States enters a deeper election year, the potential passage of these two crypto bills becomes more significant. President Biden and former President Donald Trump, the presumed candidates for the Democratic and Republican Parties in 2024, have agreed to participate in two debates on June 27 and September 10, during which crypto could be a topic of discussion.
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