The United States House of Representatives has approved the Financial Innovation and Technology for the 21st Century Act (FIT21), a major cryptocurrency bill.
The bipartisan support for the bill is unexpected, but it faces an uncertain future in the Senate without a corresponding bill.
Despite opposition from President Biden and the SEC, the bill aims to regulate cryptocurrency markets and clarify the classification of digital tokens.
The House of Representatives has approved the Digital Asset bill, the Financial Innovation and Technology for the 21st Century Act (FIT21), with a vote of 279 to 136.
This approval is a significant victory for the crypto industry, as it is the first time a major cryptocurrency bill has passed one of the chambers of Congress. Attention now turns to the Senate, where the prospects for action are more uncertain without a similar bill and clear commitment from the necessary committees.
This bill has received unexpected support from many Democrats, with 71 in favor and 133 opposed within the same party. Many representatives are going against the opposition of the White House. Gottheimer described the bill as ‘well-reasoned, thoughtful, and bipartisan,’ and pleaded for its adoption, stating that it is ‘capable of becoming law if we work together.’
While the bill has received wide support from Republicans and some Democrats, President Joe Biden expressed his opposition through a policy statement, without announcing his intention to veto.
Gary Gensler, Chairman of the Securities and Exchange Commission, strongly opposed the legislation, stating that it is unnecessary and endangers existing securities regulation.
The FIT21 establishes a framework to regulate crypto markets in the United States, providing consumer protections and designating the Commodity Futures Trading Commission as the primary regulator of digital assets and non-securities-related spot markets.
Furthermore, it more clearly defines what constitutes a crypto token as a security or commodity. Maxine Waters criticized the bill, arguing that it allows cryptocurrency companies to escape liability for violating securities laws by legalizing activities deemed illegal.
