House Crypto Bill Could Be the Answer to America’s Regulatory Dilemmas, But the Ball is Now in the Senate’s Court

Americans have embraced digital assets. The recent Cryptocurrency Adoption and Sentiment Report found that U.S. digital asset ownership has increased from 30% in 2023 to 40% in 2024. That makes sense. Digital assets are enabling greater financial inclusion and empowerment for millions of Americans — but Congress needs to act.

The U.S. House of Representatives has already risen to the occasion, passing a strongly supported bipartisan bill that would protect consumers, increase economic mobility, foster innovation, and maintain America’s leadership. The Financial Innovation and Technology for the 21st Century Act (FIT21) updates U.S. securities laws that predate technological advances. As digital assets continue to evolve, FIT21 assigns specific responsibilities to the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). It also creates a tailored framework that will allow the industry to thrive in U.S. markets.

With this growth in American ownership, FIT21’s robust consumer protections are a much-needed safeguard. The Act separates consumer funds from institutional funds, provides risk disclosures, expands bankruptcy protections, and addresses conflicts of interest. This transparency will allow regulators and consumers to identify and address fraud before it becomes widespread. FIT21 will also make it harder for third parties to launder money and finance terrorism, and its cybersecurity standards will help prevent attacks on America’s financial infrastructure.

At the same time, FIT21 promotes innovation in the U.S. digital asset market by clarifying the rules that govern the industry. Today’s rules are confusing and sometimes redundant. The resulting uncertainty drives U.S. innovators overseas and penalizes small companies that struggle to navigate compliance costs and conflicting regulations. That has prompted major economies like the European Union, the United Kingdom, Singapore, Japan, South Korea, the UAE, Brazil, and Australia to open their doors to these innovators.

Passing this comprehensive digital asset legislation doesn’t just matter to the companies themselves—it matters to our economy and to the U.S. leadership in fundamental technology. In 2018, 40% of U.S. developers worked on Web3. In 2023, that number dropped to less than 26%, according to Electric Capital’s 2023 Crypto Developer Report.

The ball is now in the Senate’s court. By passing FIT21, Congress would provide long-term stability for the digital asset market, providing EVERY consumer with a safer and more inclusive investment environment, while solidifying our position as a global leader in the digital economy. Senators, let’s get FIT21 across the finish line.

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