As the United States House of Representatives gears up for a crucial vote on the FIT21 bill next week, the cryptocurrency industry is rallying behind what could be a momentous regulatory milestone. If passed, this bill will position the US as a frontrunner in financial innovation, ensuring its competitiveness in the global digital asset landscape.
FIT21 proposes that the Commodity Futures Trading Commission (CFTC) take on the role of the primary regulatory body for cryptoassets, outlining its responsibilities in comparison to those of the Securities and Exchange Commission (SEC). The legislation aims to establish a strong system of consumer protections, including specific regulations for the safekeeping of customer assets and protocols for handling bankruptcy, as well as precautionary measures against risky market practices.
In a letter addressed to House Speaker Mike Johnson and Minority Leader Hakeem Jeffries, industry leaders such as Coinbase, Kraken, and Andreessen Horowitz emphasized that “the passage of this bill has the potential to advance blockchain technology and digital assets, fostering financial inclusion and safeguarding national security.” This endorsement highlights the significance of the legislation for the technological advancement and economic stability of the United States.
In recent developments, the industry celebrated a major victory with the House and Senate’s approval of a resolution that overturns the SEC’s accounting policy pertaining to cryptocurrencies. However, President Joe Biden has indicated his intention to veto the measure. The repeal of Staff Accounting Bulletin 121 (SAB 121) has garnered notable support, even from several Democrats who have generally been more cautious about endorsing crypto-friendly proposals.
In the Senate, the situation is more complex, with a focus on different legislation aimed at regulating stablecoin issuers as part of a broader financial package. This stands in contrast to the House’s approach, where FIT21 received approval from the Financial Services Committee with the support of some Democrats, despite opposition from veteran Maxine Waters.
As the vote draws near, the tension between the need for clear regulation and traditional political hesitancy becomes palpable. The cryptocurrency industry eagerly awaits the outcome of the vote, as it will shape the regulatory future of digital assets in the United States.
Disclaimer: The views and opinions expressed by the author or individuals mentioned in this article are solely for informational purposes and do not constitute financial, investment, or other advice. Investing or trading cryptocurrencies carries the risk of financial loss.
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