Key takeaways:
- Legislation to create regulatory certainty over digital assets was supported by the majority of members of the US House of Representatives.
- The Financial Innovation and Technology for the 21st Century Act is a significant advancement towards the goal of greater regulatory clarity in the US.
Legislation to create regulatory certainty over digital assets was supported by the majority of members of the US House of Representatives.
On May 22, House members passed H.R. 4763, also known as the Financial Innovation and Technology for the 21st Century (FIT21) Act, by a vote of 279 to 136.
The bill explains the responsibilities of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) concerning digital assets if it is approved by the Senate and signed into law. 208 Republicans and 71 Democrats voted in favor of the bill. Representative Patrick McHenry stated:
“Unfortunately, our current regulatory framework is preventing digital assets’ innovation from reaching its full potential,”
The Financial Innovation and Technology for the 21st Century Act is a significant advancement towards the goal of greater regulatory clarity in the US.
US President Joe Biden released a statement regarding today’s vote. In particular, the White House said that while they oppose the law, they would not veto it should it make it to the president’s desk. Nonetheless, the law, which would provide a thorough regulatory framework for expanding businesses, has garnered bipartisan support.
H.R. 5403, the Central Bank Digital Currency (CBDC) Anti-Surveillance State Act, which would forbid the Federal Reserve from creating a digital dollar through middlemen, is still scheduled for discussion and a vote in the House.
On May 21, the Democratic Party leadership allegedly declared that while it would not support its members voting to pass the FIT21 or the anti-CBDC law, it would not oppose the legislation.
Concerning developments are the SEC’s upcoming decision on a spot Ether Exchange Traded Fund and the rules surrounding cryptocurrencies as the US moves into a deeper election year and more people become aware of digital assets.
There are two scheduled debates: June 27 and September 10. The 2020 Democratic and Republican Party nominees are anticipated to be former presidents Donald Trump and Joe Biden.
Recently, Donald Trump also declared that crypto would be allowed for fundraising. Biden has also expressed his readiness to cooperate with Congress on a “balanced regulatory framework.”
