Lawmakers are anticipated to vote on a bill concerning the regulation of digital assets by June, following a resolution passed by a majority in both chambers opposing an SEC cryptocurrency rule.
Numerous cryptocurrency entities and advocacy organizations are urging U.S. lawmakers to back legislation that clarifies the roles of financial regulators in the realm of digital assets. Approximately 60 companies represented by the Crypto Council for Innovation (CCI) penned a letter to the leadership of the U.S.
House of Representatives on May 16, advocating for the passage of H.R.4763, also known as the Financial Innovation and Technology for the 21st Century (FIT21) Act. This bill, which advanced from the House Financial Services Committee in July 2023, aims to delineate the regulatory jurisdictions of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) concerning digital assets.
The CCI emphasized the necessity of regulatory clarity, asserting that while the FIT21 Act may introduce new compliance complexities for digital asset firms, it ultimately promotes responsibility and enhances consumer safety compared to the existing regulatory ambiguity.
They highlighted the inadequacy of current regulatory frameworks, which require digital asset companies to navigate U.S. securities laws formulated almost a century ago, without considering contemporary technological capabilities such as instantaneous internet transactions.
Coinbase, Circle, Block, Kraken, Gemini, and Stand With Crypto were among the signatories of the letter, encouraging U.S. voters to reach out to their representatives and endorse the bill. Patrick McHenry, Chair of the House Financial Services Committee, indicated that the FIT21 bill might be prepared for a comprehensive floor vote “later this month,” following deliberation in the rules committee.
This timeline would provide lawmakers approximately five session days before June. Numerous legislators, including Representative French Hill, have already expressed their intention to support the legislation. Over the past ten days, both the House and Senate passed a resolution to revoke an SEC regulation regarding the treatment of digital assets by banks. Despite bipartisan backing in Congress, President Joe Biden announced his plan to veto the measure.
Senator Cynthia Lummis, a proponent of digital assets, noted that the recent resolution reversing the SEC rule marked the first instance of standalone cryptocurrency legislation in this session of Congress. It remains uncertain whether lawmakers will similarly pass FIT21. The White House has yet to indicate whether President Biden would promptly sign the bill into law if it clears both the House and the Senate.
The potential enactment of these two cryptocurrency bills coincides with the United States delving deeper into an election year. Both President Biden and former President Donald Trump, the likely candidates for the Democratic and Republican Parties in 2024, have agreed to participate in two debates scheduled for June 27 and Sept. 10, where cryptocurrency may emerge as a topic of discussion.
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