The House passed a bill providing regulatory certainty and consumer protection for digital assets

The US House of Representatives passed a bill this week to provide consumer protection and regulatory certainty for digital assets.

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The Financial Innovation and Technology for the 21st Century Act (HR 4763), or FIT21, will provide the Commodity Futures Trading Commission (CFTC) with new jurisdiction over digital goods and clarify the Securities and Exchange Commission’s (SEC) jurisdiction over assets. digital products offered as part of an investment contract.

The bill also establishes a procedure to allow secondary trading in digital goods if they were originally offered as part of an investment agreement. Additionally, it imposes customer disclosure, asset safeguarding, and operational requirements on all entities that are required to register with the CFTC and/or SEC.

“Today, the House took a historic step by passing FIT21 with broad, bipartisan support,” said U.S. Rep. Patrick McHenry (R-NC), chairman of the House Financial Services Committee. “FIT21 provides regulatory clarity and robust consumer protections necessary to grow the digital asset ecosystem in the United States. The bill also ensures that America will lead the financial system of the future and remain a center of technological innovation.”

The bill was originally introduced by U.S. Representatives Glenn Thompson (R-PA), French Hill (R-GA), Dusty Johnson (R-SD), Tom Emmer (R-MN), and Warren Davidson (R-OH). McHenry is a co-sponsor of the legislation.

“Transparency of digital assets is key. Today’s bipartisan passage of the 21st Century Financial Innovation and Technology Act is a significant milestone. This underscores the efforts of the House Agriculture and Financial Services Committee to establish a much-needed regulatory framework,” Thompson said. “This framework aims to protect consumers and investors while supporting U.S. leadership in the digital asset space. I would like to thank Chairman McHenry for his leadership and that of our subcommittee chairs, Member Johnson and Member Hill, in introducing this legislation.”

Hill called it a historic day for American consumers, investors and innovators.

“I applaud the House’s bipartisan passage of FIT21, which creates a ‘fit for purpose’ regulatory framework for digital assets that protects consumers and investors while positioning the United States as a leader in blockchain innovation. As the FTX collapse demonstrated, we need a functional regulatory framework to create consumer protections that currently do not exist while ensuring America’s leadership in digital assets,” Hill said. “This legislation passed in a bipartisan manner, signaling that consumer protection and American innovation are priorities for lawmakers on both sides of the aisle.”