Lawmakers from the United States House Financial Services Committee have revealed their preparations for a comprehensive floor vote on the Financial Innovation and Technology for the 21st Century Act, commonly referred to as FIT21.
In a statement on May 10th, Chairperson Patrick McHenry indicated that the entire chamber could be poised for a vote on the FIT21 legislation “later this month,” pending deliberations in the House Committee on Rules.
Initially approved by the committee in July 2023, the bill aims to define the regulatory roles of the U.S. Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) in overseeing digital assets.
Representative French Hill expressed satisfaction, stating, “After tirelessly working across the aisle and across the nation over the past year to craft a clear, pragmatic regulatory framework for digital assets, I am proud that this landmark legislation is coming to the House Floor.” Hill emphasized the necessity for robust consumer protections and a cohesive regulatory structure following the FTX collapse, underscoring the importance of safeguarding investors and consumers while fostering America’s prominence in blockchain innovation.
Republican legislators argue that the FIT21 bill would empower the CFTC with additional oversight of digital commodities and clarify the SEC’s jurisdiction over cryptocurrencies. This announcement followed a bipartisan House vote supporting a resolution to revoke an SEC accounting regulation concerning crypto, criticized for imposing constraints on banks.
The bill’s prospects for passage in the House remain uncertain. While Representative McHenry attributed the legislation’s progression to bipartisan collaboration, its journey entails approval from the Senate and eventual enactment by President Joe Biden.
Sheila Warren, CEO of the Crypto Council for Innovation, highlighted the significance of the updated bill language for stakeholders to evaluate changes made since its markup by the HFSC, Republicans, and Democrats last July. She acknowledged FIT21’s imperfections but hailed it as a pivotal milestone towards establishing a federal regulatory framework for digital assets in the U.S.
With the U.S. in an election year, many lawmakers prioritize regulating digital assets as a campaign agenda. Coinbase’s Stand With Crypto initiative recently launched a political action committee to endorse pro-crypto candidates in 2024. Representative McHenry, who announced he will not seek reelection in December, remains engaged in advancing crypto-related legislation.
