Bitcoin
US House Passes Crypto FIT21 Bill With Wave of Democratic Support
The crypto industry recorded its biggest political victory in the US on Wednesday when the House of Representatives passed a wide-ranging bill to establish regulations for digital asset markets, recording a 279-136 vote that saw Democrats cross party lines to support him.
The Financial Innovation and Technology for the 21st Century Act (FIT21) marks the first time a major cryptography bill has passed either chamber of Congress. The issue now goes to the US Senate, where its future is much more obscure, because there is no counterpart project. Support for such an effort is not yet clear, and the necessary committees have not done the same level of work on cryptography.
The US has lagged behind other global jurisdictions in establishing crypto regulations, and despite Wednesday’s victory, the implementation of such oversight is far from complete.
“We need rules of the road,” said Rep. Josh Gottheimer (D-N.J.), one of the Democrats who resisted White House opposition, and the ranking Democrat on the House Financial Services Committee, Rep. Maxine Waters (D). . -California). He called it “well-reasoned, thoughtful and bipartisan legislation” and argued before the vote that “it can become law if we work together.”
Overall, 71 Democrats and 208 Republicans voted in favor of the bill, compared to 3 Republicans and 133 Democrats who voted against it.
President Joe Biden opposed the bill with a policy statement, although he did not say he would veto the bill, as he did recently when Congress tried to overturn an effort by the Securities and Exchange Commission (SEC) to set a crypto accounting policy. SEC Chairman Gary Gensler also spoke out strongly against the legislation in a lengthy public statement arguing that the bill was unnecessary and put existing securities regulations at risk.
The legislation – largely driven by House Republicans – would establish a regime to regulate US crypto markets, establishing consumer protections, installing the Commodity Futures Trading Commission (CFTC) as a lead regulator of digital assets and the dog custody of non-securities spot markets. and would more clearly define what makes a cryptographic token a security or a commodity.
Waters argued that the bill aims to allow crypto companies that have dodged securities laws to avoid liability.
“They have already made billions of dollars by illegally issuing or facilitating the purchase and sale of crypto securities,” Waters said. “And Republicans now propose rewarding these illegal activities by making them legal.”
Before voting on Wednesday afternoon, the Chamber debated some amendments to the bill, including those from deputies. Greg Casar (D-Texas), Brittany Pettersen (D-Co.), Ralph Norman (RS.C.) and Scott Perry (R-Pa.). Casar’s amendment to change the crowdfunding exemption from $75 million to $5 million was defeated, but the remainder was adopted.
UPDATE (May 22, 2024, 9:48 pm UTC): Adds vote count and removes mention of CBDC bill.