The crypto industry is advocating for regulatory clarity, and they are doing so with one voice. This follows after their concerted effort saw the Financial Innovation and Technology for the 21st Century (FIT21) Act approach a crucial vote in the U.S. House of Representatives.
On May 16, about 60 companies and advocacy groups, represented by the Crypto Council for Innovation (CCI), sent a letter to House leaders urging them to support H.R.4763.
There's no Call To Action with the ID #3.Key Crypto Firms Rally Behind FIT21 Bill
The FIT21 bill seeks to clarify the roles of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) in regulating digital assets. Since the House Financial Services Committee approved the bill in July 2023, it has gone on to garner widespread support within the industry. That is why industry bigwigs such as Coinbase, Kraken, Block, Gemini, Circle, and the advocacy group Stand With Crypto have not just lent their voices, but were also signatories in the letter just sent.
They argue that the current regulatory framework is based on laws nearly a century old and therefore outdated. That is, considering that it can not meet up with the unique characteristics and technological advancements of digital assets. An excerpt from CCI’s letter reads:
“We recognize that FIT21 will introduce new compliance challenges for digital assets companies, but regulatory clarity is indisputably more responsible, safer for consumers, and preferable to the status quo.”
They laid emphasis on the need for a review of the regulatory approach to align with the rapid pace of technological innovation in the digital asset space today.
There's no Call To Action with the ID #3.Meanwhile, the House Financial Services Committee Chair Patrick McHenry has said that the FIT21 bill could be brought to the House floor for a vote later this month. That is after a review by the rules committee. With only a few legislative days left before June, the bill’s proponents are urging swift action.
For what it’s worth, though, many lawmakers, including Representative French Hill, have already hinted that they would be voting in favour of the legislation.
Legislative Momentum and Political Context
The momentum behind FIT21 comes on the heels of recent legislative actions concerning digital assets. On Thursday, the U.S. Senate passed a resolution to overturn a controversial SEC rule that threatened regulated banking institutions from offering crypto custodial services. This resolution, which received bipartisan support, marked the first standalone crypto legislation passed in the current session of Congress. However, President Joe Biden has expressed his intention to veto the resolution.
The future of FIT21 remains uncertain as it awaits consideration by the full House and potentially the Senate. The White House has not indicated whether President Biden would sign the bill into law if it passes both chambers.
