The US House of Representatives approved the FIT21 bill by a vote of 279 to 136, advancing it to the Senate.
This initial approval of the Financial Innovation and Technology for the 21st Century (FIT21) Act could significantly impact the cryptocurrency market, indicating bullish sentiment across the market. This bill is an important step toward comprehensive regulation of digital assets in the United States, which could shape the future of cryptocurrency trading and investing.
What is FIT21?
The FIT21 bill, released by the House Agriculture Committee and the House Financial Services Committee, aims to clarify how the SEC classifies cryptocurrencies by creating the term “digital good” for digital assets.
The main goals of the bill are to clarify the SEC's regulatory roles, improve consumer protection, and create a stable environment for digital asset innovation. It aims to eliminate fraud, regulate cryptocurrency exchanges and protect consumers. Before the vote, the bill received bipartisan support.
Scott Mason, senior policy advisor at Holland & Knight, told crypto.news that FIT21 “is certainly an opportunity to give the cryptocurrency/blockchain industry confidence that the US is a friendly market… The industry is here to stay, and the US needs to lead, not follow.” The euro and other countries are actively seeking to attract investment in the industry.
Judgment
House proceedings got off to a slow start after Rep. Jim McGovern made a comment about former President Donald Trump, prompting Republicans to demand that McGovern's words be “deleted.” this mechanism It can be relied upon during discussion in the Council chamber, in the Committee of the Whole, or in the permanent and selected committees of the Council.
The confrontation over this issue continued for more than an hour before the proceedings continued. McGovern later tweeted that he was banned from speaking on the House floor.
After these events, the bill received committee approval, where it was voted on by 204 to 203 before final discussions. In final debate, Congressman Patrick McHenry cited support for FIT21, saying this legislation “It will enhance U.S. global leadership in technological innovation, invention, and adoption.
The vote ended 279-136 with 71 Democrats voting in favor of the bill.
“This vote represents years of tireless efforts by policymakers, their staff, and the industry to protect consumers and keep the United States at the forefront of digital innovation. This is proof that innovation and consumer protection can coexist in the digital asset space. 71 Democrats voted to keep technology a nonpartisan issue. Sheila WarrenCEO of the company Crypto Innovation CouncilThis was stated in a memo obtained by crypto.news
What then?
Earlier on Wednesday, the White House publicly objected to the bill, citing the lack of a regulatory framework for digital assets. Regardless, the Biden administration expressed its willingness to cooperate with lawmakers to create clear cryptocurrency legislation, and stated that he would not veto the bill.
The FIT21 Act's journey does not end with a vote in the House of Representatives. If passed, it will be referred to the US Senate for further study. The House of Representatives also voted and passed a bill that explicitly prohibits the US Federal Reserve from issuing a central bank digital currency.