The FIT Act is the most comprehensive cryptocurrency regulation ever voted on by Congress

Last month’s votes by the House Financial Services Committee and the House Agriculture Committee on the Financial Innovation and Technology for the 21st Century Act (FIT Act) marked a significant milestone for the digital asset industry.

While not yet perfect, the FIT Act is the most comprehensive piece of legislation for the digital asset industry voted on by our elected officials, and marks the first time that crypto-focused regulatory bills have been rejected by any committee in the House or Senate.

Kristin Smith is the company’s CEO Blockchain Associationa Washington, D.C.-based trade association representing over 100 of the industry’s leading companies.

Even more encouraging is the fact that the FIT Act has gained significant bipartisan support, making it a symbol of cooperation and recognition that this sector is too important to maintain the status quo regulatory system.

The message from policymakers last month was clear: cryptocurrencies are here to stay and Congress, not regulators, will determine the appropriate regulatory framework for the industry. The cryptocurrency industry is too large to be subject to the whims of partisan politics, and last week’s vote signaled a shift among lawmakers who want to come together to craft smart regulations that promote innovation and ensure consumer protection.

These voices highlighted the need – and the increasing dynamics driving it – of bilateral cooperation to effectively deal with the complexity and potential of cryptocurrencies. Committee members rightly lamented over and over again the ineffectiveness of the current regulatory system and, consequently, the overactive enforcement campaign by the U.S. Securities and Exchange Commission (SEC).

We need to maintain this traction as new technologies such as blockchain and artificial intelligence continue to develop.

These important voices also come at an important time for the crypto industry. From the collapse of the algorithmic stablecoin Do Kwon to the spectacular fall of Sam Bankman-Fried after the implosion of FTX, the cryptocurrency ecosystem has suffered in the eyes of the public, investors and Washington circles.

However, many members of Congress have recently responded with a growing awareness and recognition that the digital asset industry cannot simply be forgotten. As cryptocurrencies and blockchain technology continue to gain traction and pose practical and philosophical challenges to traditional financial systems, it becomes even more important for regulators to develop smart, forward-looking regulations that support innovation while ensuring consumer protection and financial stability.

Maintaining and increasing bipartisan support in Washington requires the industry to continually prove world-changing use cases for this technology. Indeed, beyond the speculative aspects often associated with them, digital assets and crypto networks offer countless social benefits.

Just as the Internet revolutionized information, cryptocurrency is revolutionizing the concept of value. From instant money transfers around the world, to empowering artists and creators, to serving the unbanked and underbanked, cryptocurrency networks are changing the world for the better.

The FIT Act is a significant step forward in recognizing the importance of the digital asset industry, but there is still much work to be done. The upcoming session of Congress after the August break will be crucial both in terms of refining the bill and starting the next phase of policymaking for the industry.

Industry stakeholders, regulators and legislators must work together to address potential loopholes, uncertainties and regulatory loopholes. The aim is to create a comprehensive framework that supports innovation, maintains market integrity and, most importantly, protects consumers and investors.

As this process continues, organizations like the Blockchain Association remain ready to serve as valuable resources. Collaboration between industry and policymakers is crucial to finding the right balance between innovation and regulation.

With the collective expertise and insights of both parties, future regulations will be carefully crafted to address the ever-changing dynamics of the digital assets space, solidifying the United States’ position as a global leader in innovation.