The House passes a bill regulating cryptocurrencies, awaiting Senate approval

The US House of Representatives has approved the Financial Innovation and Technology for the 21st Century Act (FIT21), a bill aimed at regulating the cryptocurrency market.

In Wednesday’s bipartisan vote, 279 members, including 71 Democrats, supported the legislation and 136 opposed it.

This bill, currently pending in the Senate, could create a new regulatory framework for digital assets by strengthening oversight by the Commodity Futures Trading Commission (CFTC).

It also introduces guidelines for secondary market trading of digital goods initially offered as investment contracts, as well as addressing issues of stable coins and anti-money laundering protocols.

Despite criticism from the White House over the lack of adequate protections for consumers and investors, the administration has expressed readiness to work on a regulatory framework for digital assets.

The passage of FIT21 signals a potential shift in Congress’s perspective on cryptocurrencies and their impact on the financial sector.

FIT21 has faced opposition from SEC Chairman Gary Gensler, who says the bill could lead to regulatory loopholes and threaten investor protection.

Democrat Maxine Waters, ranking member of the House Financial Services Committee, also raised concerns, arguing that the bill could overburden the CFTC and fail to provide sufficient regulatory authority.