Nancy Pelosi, the former Speaker of the United States House of Representatives, is reportedly considering supporting the Financial Innovation and Technology for the 21st Century Act (FIT21), a crypto bill led by Republicans. According to sources familiar with Pelosi’s thinking, the bill may be voted on in the House on May 22, as reported by The American Prospect on May 21.
FIT21 aims to clarify the division of authority over crypto assets between the Commodity Futures Trading Commission and the Securities and Exchange Commission. If passed, the bill would also modify the Howey test, a legal standard used to determine securities, and reduce the SEC’s oversight of crypto.
The crypto industry has embraced FIT21, as it brings clarity to the regulatory framework for digital assets. Mark Hays, a senior policy analyst on fintech with Americans for Financial Reform, stated that the bill meets the industry’s long-standing demand for a regulatory regime primarily controlled by the CFTC, which has been more accommodating to the industry.
Pelosi’s support for the bill would go against the stance of ranking Democrats Maxine Waters and David Scott, who oppose it. However, leaked emails indicate that they will not enforce party discipline to vote against the bill.
This reported support from Pelosi is the latest indication of the Democrats warming up to crypto. Some analysts suggest that the SEC’s potential approval of spot Ether fund applications is another attempt to garner support from pro-crypto voters.
Nevertheless, financial reform groups and anti-crypto Democrats argue that the bill would dismantle decades of financial regulations to benefit the crypto industry. They view it as an attempt to navigate the influence of super PACs, political action committees that can collect unlimited funds to support pro-crypto candidates in the upcoming elections. Senator Elizabeth Warren and these opposing Democrats see the growing role of crypto in this year’s elections as a threat.
On May 21, Representative Wiley Nickel of North Carolina urged lawmakers to support FIT21 to prevent the SEC from turning cryptocurrency regulation into a political issue.
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