Ethereum
Bitcoin and Ethereum mobilize on proposed crypto legislation
Bitcoin (BTC-USD) and Ethereum (ETH-USD) are recovering this week as investors optimistic about a new regulatory framework and the approval of an ether ETF that could boost the industry. Yahoo Finance Journalist Jennifer Schoenberger learn more about new legislation that could change the crypto industry.
The House is set to vote today for the first time on crypto legislation known as the Financial Innovation and Technology for the 21st Century Act, or FIT21. This law would make the Commodities Futures Trading Commission (CFTC) the primary regulator of digital assets and establish protections for consumers.
Republican lawmakers say FIT21 will bring clarity to the crypto industry, while Democrats believe it will effectively deregulate most cryptocurrencies by removing them from the jurisdiction of the Securities and Exchange Commission (SEC).
The vote will take place today around 5 p.m. ET and is expected to pass. However, FIT21’s future in the Senate remains uncertain.
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This article was written by Mélanie Riehl
Video transcription
Now let’s move on to cryptocurrencies, Bitcoin and Ethereum.
Gathering this week, investors are looking to Washington, D.C., hoping that regulations and new products could potentially increase the industry’s mainstream appeal.
Joining us now to lay out what’s on the table when it comes to crypto in Washington is ours.
Jennifer Schomer, Jen.
Hello, Shana.
That’s right.
The crypto world hopes to make gains this week in Washington as it pushes for a new regulatory framework and approval of an E ETF.
Today, the House is set to vote for the first time ever on comprehensive crypto legislation called the Financial Innovation and Technology for the 21st Century Act or as it is called Short Fit 21.
This legislation, which Financial Services Chairman Patrick Mchenry has been advocating for nearly a year, would establish the future of commodities and the commission as the primary regulator of digital assets.
There would be clear divisions between what the CFTC would regulate and what would fall under the purview of the Securities and Exchange Commission, which has vehemently cracked down on the crypto industry with a litany of enforcement actions.
This legislation would also establish consumer protections and borrow the type of custom fund mixing that played a role in the defeat of crypto exchange FTX in 2022.
Now, Republican lawmakers say this legislation will bring clarity to the crypto industry.
But most Democrats-led House Financial Services Committee ranking member Maxine Waters opposed the bill, warning that the bill would effectively deregulate most cryptocurrencies by removing them from the jurisdiction of the SEC.
The story continues
In a rare rebuke of the SEC Chairman, Gary Ginzler this morning issued a lengthy statement on the legislation saying, quote, it would create new regulatory loopholes and undermine decades of precedent for oversight of investment contracts , exposing investors in capital markets to measurable risk. .
The House expects to vote on the bill around 5 p.m. this afternoon, where it is expected to pass largely thanks to support from Republicans and a handful of Democrats.
But the prospects in the Senate remain.
Dimmer Mchenry told reporters late yesterday afternoon that he hopes a good vote result will prompt the Senate to take another look at the bill.
Meanwhile, elsewhere here in Washington, the SEC would have faced a deadline of May 23, which is tomorrow, for approving or rejecting an ETF E. When I requested comments to the SEC, they responded that we don’t comment on individual filings.