U.S. House of Representatives approves FIT21 cryptocurrency bill with bipartisan support
A majority of members of the U.S. House of Representatives have voted in favor of legislation establishing regulatory clarity for digital assets.
House members approved HR4763, the Financial Innovation and Technology for the 21st Century (FIT21) Act, on May 22 by a vote of 279 to 136. If passed by the Senate and signed into law, the bill would clarify the role the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) have on digital assets. 71 Democratic lawmakers and 208 Republican lawmakers voted in favor of the bill.
“Unfortunately, our current regulatory framework is preventing innovation in digital assets from reaching their full potential,” said Representative Patrick McHenry ahead of the House vote. “The SEC and CFTC are currently fighting a food fight for control of these asset classes.”
Rep. Maxine Waters also said she intends to oppose the bill ahead of a vote in the plenary session. She argued that the FIT21 bill would send cryptocurrencies into a “unregulated no-man’s land,” adding that the language would allow traditional financial firms to operate without SEC oversight.
“This bill is probably the worst and most harmful proposal I have seen in a long time,” Waters said. “This bill would relax regulations on cryptocurrencies and certain traditional securities to the extent that I and other experts have serious concerns about this bill causing a potential market crash and recession.”
Related: US lawmakers address House ahead of FIT21 vote: Bill ‘will stop another FTX’
The House of Representatives is scheduled to discuss and vote on HR 5403, the Central Bank Digital Currency (CBDC) Anti-Oversight Act, which would prohibit the Federal Reserve from issuing digital dollars through intermediaries. Democratic Party leaders reportedly said on May 21 that they would not support party members voting to pass the anti-CBDC bill or the FIT21 bill, but would not oppose the bill.
The SEC’s decision to put a hold on cryptocurrency-related legislation and a spot Ether (ETH) exchange-traded fund comes as digital assets are on the minds of many voters as the United States heads into an election year. President Joe Biden and former President Donald Trump, the presumptive candidates for the Democratic and Republican parties in 2024, agreed to two debates on June 27 and September 10.
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