A vast majority of members in the United States House of Representatives have shown their support for a bill that aims to bring regulatory clarity to digital assets.
On May 22, the House lawmakers voted 279 to 136 in favor of H.R.4763, also known as the Financial Innovation and Technology for the 21st Century (FIT21) Act. If approved by the Senate and signed into law, this bill will define the roles of the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) in overseeing digital assets. A significant number of Democrats, 71 in total, joined forces with 208 Republicans to vote in favor of the bill.
Representative Patrick McHenry expressed his concerns about the current regulatory framework, stating that it is hindering the full potential of digital asset innovation. He emphasized that the SEC and CFTC are currently engaged in a power struggle for control over these asset classes.
However, Representative Maxine Waters voiced her opposition to the legislation before the vote took place. She argued that the FIT21 bill would create a regulatory void for cryptocurrencies and allow traditional finance firms to operate without SEC oversight. Representative Waters went so far as to call this bill the “worst, most harmful proposal” she has seen in a long time, warning that it could potentially lead to a market crash and recession.
In addition to the FIT21 Act, the House is also scheduled to discuss and vote on H.R. 5403, the Central Bank Digital Currency (CBDC) Anti-Surveillance State Act. This bill aims to prohibit the Federal Reserve from issuing a digital dollar through intermediaries. The Democratic Party leadership has expressed its disapproval of its members voting in favor of either the anti-CBDC bill or the FIT21 bill. However, they have decided not to pressure them against supporting the legislation.
As the United States enters deeper into an election year, the discussion around crypto-related legislation and the SEC’s pending decision on a spot Ether (ETH) exchange-traded fund becomes increasingly significant. Both President Joe 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 Sept. 10.
In summary, the battle between the SEC and digital assets is reminiscent of the epic clash between Godzilla and Kong, with the SEC facing fierce opposition from the legal firepower of the crypto industry.