U.S. House Approves Crypto FIT21 Bill with Democratic Support
The U.S. House of Representatives has approved a major crypto bill called the Financial Innovation and Technology for the 21st Century Act, or FIT21. This bill passed with a vote of 279-136, showing strong support from House Democrats. This is a significant win for the crypto industry, marking its biggest policy achievement in Congress to date.
A Historic Vote for Crypto
The vote to approve the crypto market-structure bill is a huge milestone. It sets up regulations for digital assets markets, which is a big step forward. This is the first time a major crypto bill has passed in one of the chambers of Congress. Now, the bill will move to the U.S. Senate, where its future is uncertain. There is no similar bill in the Senate yet, and it is unclear if it will get the same level of support.
The Need for Crypto Regulations
The U.S. has been lagging behind other countries in creating regulations for crypto. Despite the win in the House, there is still a long way to go before these regulations are fully in place. Representative Josh Gottheimer, a Democrat from New Jersey, said, “We need rules of the road.” He was one of the Democrats who supported the bill, even though the White House and the top Democrat on the House Financial Services Committee, Maxine Waters, were against it. Gottheimer described the bill as “well-reasoned, thoughtful, bipartisan legislation” and urged cooperation to make it law.
Breakdown of the Vote
Overall, 71 Democrats and 208 Republicans voted in favor of the bill, while 3 Republicans and 133 Democrats voted against it. This bipartisan support is notable, especially given the opposition from some top Democrats and President Joe Biden. Although Biden opposed the bill, he did not say he would veto it, unlike a recent instance when Congress tried to overturn a Securities and Exchange Commission (SEC) effort to set crypto accounting policy.
SEC’s Opposition
SEC Chair Gary Gensler also strongly opposed the bill. He argued that the bill was not necessary and that it could harm existing securities regulations. The new legislation, driven mainly by House Republicans, aims to regulate the U.S. crypto markets. It plans to set up consumer protections and appoint the Commodity Futures Trading Commission (CFTC) as the main regulator of digital assets. The CFTC would oversee non-securities spot markets and help define what makes a crypto token a security or a commodity.
Controversy and Debate
Representative Maxine Waters argued against the bill, saying it would allow crypto businesses to avoid responsibility for dodging securities laws. “They have already made billions of dollars unlawfully issuing or facilitating the buying and selling of crypto securities,” Waters said. “And Republicans are now proposing to reward these illegal activities by making these activities legal.”
Before the vote, the House debated several amendments to the bill. Representatives Greg Casar from Texas, Brittany Pettersen from Colorado, Ralph Norman from South Carolina, and Scott Perry from Pennsylvania proposed changes. Casar’s amendment to lower a crowdfunding exemption from $75 million to $5 million was rejected, but the other amendments were accepted.
Future Steps and Challenges
With the House’s approval, the next step is for the bill to go to the Senate. However, the path ahead is not clear. The Senate has not worked as much on crypto issues, and there is no similar bill there yet. This uncertainty means it could take a while before any new regulations are put in place.
Importance of the Bill
The Financial Innovation and Technology for the 21st Century Act is seen as a crucial step in regulating the growing crypto market. It aims to provide clear rules and protections for consumers, which are necessary for the market to grow responsibly. By appointing the CFTC as the main regulator, the bill seeks to create a more structured and secure environment for digital assets.
Bipartisan Efforts
The bill’s approval shows that there can be bipartisan efforts in Congress, even on complex issues like crypto regulation. The support from both Democrats and Republicans indicates a shared understanding of the need for clear regulations in the crypto space. This cooperation is essential for the bill to become law and for the U.S. to catch up with other countries in crypto regulation.
Result
The U.S. House of Representatives has approved the Financial Innovation and Technology for the 21st Century Act with significant support from Democrats. This bill marks a major achievement for the crypto industry and aims to regulate digital assets markets. Despite the victory, the bill faces challenges in the Senate, and its future is uncertain. The need for clear crypto regulations is evident, and this bill is a step in the right direction.
