House of Representatives passes cryptocurrency regulation bill, attention to Senate approval

The U.S. House of Representatives has approved the Financial Innovation and Technology for the 21st Century Act (FIT21), a bill designed to regulate cryptocurrency markets.

As a result of a bipartisan vote on Wednesday, 279 people, including 71 Democratic lawmakers, supported the bill, and 136 opposed it.

The bill, currently making its way to the Senate, could establish a new regulatory framework for digital assets, strengthening oversight by the Commodity Futures Trading Commission (CFTC).

It also introduces guidance on secondary market trading of digital goods initially offered as investment contracts, in addition to covering stablecoins and anti-money laundering protocols.

Despite criticism from the White House that it lacks adequate consumer and investor protections, the administration has indicated it is ready to put in place a regulatory framework for digital assets.

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

FIT21 faced opposition from SEC Chairman Gary Gensler, who argued the bill could create regulatory loopholes and compromise investor protections.

Maxine Waters, the Democratic ranking member on the House Financial Services Committee, also expressed concern that the bill could overburden the CFTC and fail to provide sufficient regulatory authority.