House Democratic leaders won’t whip FIT21 before vote: report

Last Updated: May 21, 2024 11:58am EDT | 2 minute read

Reps. Maxine Waters (D-CA) and David Scott (D-GA) will refrain from criticizing the Financial Innovation and Technology for the 21st Century Act (FIT21) ahead of an expected Wednesday vote on cryptocurrency regulation, according to an email obtained by Politico on Monday.

Maxine Waters and David Scott will not beat FIT21 before Wednesday’s vote

According to the email Sent from the Democratic Whip’s office, Rep. Waters and Rep. Scott (D-GA) say that while they “strongly oppose” the cryptocurrency regulatory framework, the representatives will not push party members to vote against it.

HR 4767, also known as FIT21, has been widely supported by major players in the cryptocurrency industry. It would provide clear regulatory guidance for the digital asset industry by ensuring the Commodity Futures Trading Commission (CFTC) has greater accountability cryptographic regulations.

Critics argue that the bill would weaken already established safeguards against instability in the country cryptocurrency marketHowever.

“This language undermines decades of legal precedent and case law, thereby creating uncertainty in our traditional securities market,” Monday’s email read. “The bill also provides a safe harbor where entities can file an “intent to register” if they meet certain requirements, effectively shielding them from SEC rules and regulations until the SEC and CFTC finalize their rules, which It weakens investor protection and opens the door to fraud and market manipulation.”

A change in cryptocurrency regulation in the United States?

The US Securities and Exchange Commission (SEC) has been widely criticized for this regulatory approach through enforcement to cryptocurrencies. In recent years, the federal agency has issued several high-profile enforcement actions against industry operators.

The strict regulatory climate in the United States on this matter digital resources has sparked further economic concerns that it could push crypto businesses abroad and stifle innovation altogether.

Monday on The Blockchain Association sent a letter to House Speaker Mike Johnson (R-LA) and House Minority Leader Hakeem Jeffries (D-NY), where they urged a full-House vote on the bill, arguing that it would bring “regulatory clarity for U.S. operators “.

“This lack of clarity hinders innovation and hinders businesses, damaging America’s position in the global tech race,” the Blockchain Association letter reads. “We seek pro-innovation and pro-consumer barriers to ensure a fair and safe marketplace and safeguard U.S. technology leadership in this cutting-edge space.”

If FIT21 successfully passes through both houses of Congress, it could be an encouraging sign that the US government is ready for common-sense crypto regulation.

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