Republican lawmakers on the House Financial Services Committee in the United States have announced that the House of Representatives will vote on legislation that aims to clarify the roles of financial regulators in overseeing digital assets. The legislation, known as the Financial Innovation and Technology for the 21st Century (FIT21) Act, is set to be voted on this week, providing an opportunity for it to become law. Its purpose is to provide clarity on how digital assets are regulated by the U.S. Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC).
The progress of the legislation has been slow since it was passed by the House Financial Services Committee in July 2023. However, Committee Chair Patrick McHenry has stated that the House Committee on Rules could soon clear the bill for a vote in the full chamber.
Support for the bill has already been expressed by industry advocates and House members. If passed, it would be one of the few pieces of crypto-focused legislation to be enacted this session. President Joe Biden is also expected to make a decision on a joint resolution passed in May that aims to overturn an SEC rule regarding the handling of digital assets by banks.
Both the Blockchain Association and the Crypto Council for Innovation, two crypto advocacy groups, have called on House leadership to support the passage of the FIT21 Act. They argue that the U.S. needs regulations that are pro-innovation and pro-consumer. However, it remains uncertain whether the bill will receive majority support from lawmakers. Although Republicans currently hold a slim majority in the House, 21 Democrats joined them in supporting the resolution to nullify the SEC accounting rule.
CEO Sheila Warren of the Crypto Council for Innovation has described the FIT21 Act as a critical and historic step towards establishing a federal regulatory framework for digital assets in the U.S. However, politics may also influence lawmakers’ decisions on whether to vote in favor of the bill. As the 2024 U.S. elections approach, some lawmakers, including Senator Elizabeth Warren, have emphasized their stance on the regulation and oversight of digital assets. Representative McHenry, who will be voting on the bill, has confirmed that he does not intend to run for re-election in November.