US House of Representatives Approves FIT21 Cryptocurrency Act with Bipartisan Support, Signaling Regulatory Change

In a significant legislative move, the US House of Representatives approved the FIT21 cryptocurrency bill with strong bipartisan support, aimed at providing clear regulatory guidance for digital assets.

The House passes FIT21 to clarify digital assets regulations in the context of bipartisan support and debate

According to Cointelegraph, a majority of members of the United States House of Representatives voted for legislation that would provide regulatory clarity regarding digital assets.

On May 22, the House of Representatives showed bipartisan support by approving HR4763, also known as the Financial Innovation and 21st Century Technologies Act (FIT21), by a vote of 279 to 136. The bill, if passed by the Senate and signed into law, would define the role of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) for the regulation of digital assets. It is worth noting that 71 Democrats and 208 Republicans voted in favor of the bill.

“Unfortunately, our current regulatory framework prevents digital content innovation from reaching its full potential,” Representative Patrick McHenry said before the House vote. “The SEC and CFTC are currently fighting for control of these asset classes.”

Rep. Maxine Waters, who spoke before the vote, said she would reject the legislation. She noted that the FIT21 Act would place cryptocurrencies in a “regulatory no man’s land” and that the language would allow traditional financial firms to operate without SEC monitoring.

“This (bill) is probably the worst and most harmful proposal I have seen in a long time,” said Rep. Waters. “This bill would deregulate cryptocurrencies and some traditional securities to such an extent that I and other experts have expressed serious concerns that this bill would cause a potential market crash and recession.”

The House will vote on anti-CBDC legislation as cryptocurrency regulations take center stage ahead of an election year

The House is still scheduled to consider and vote on H.R. 5403, the Central Bank Digital Currency (CBDC) Anti-Surveillance Act, which would prevent the Federal Reserve from issuing digital dollars through intermediaries. On May 21, Democratic Party leaders reportedly stated that they did not support their members in voting for anti-CBDC or FIT21 legislation, but would not oppose the legislation.

Cryptocurrency-related legislation and an upcoming SEC ruling on the Etherexchange-listed spot fund come as the U.S. enters an election year and digital assets are on many people’s minds. President Joe Biden and former President Donald Trump, the presumptive 2024 nominees for the Democratic and Republican Parties, agreed during two debates on June 27 and September 10.

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