The Financial Innovation and Technology for the 21st Century Act Is a Watershed Moment for Our Industry

Note: The views expressed in this column are those of the author and do not necessarily reflect those of CoinDesk, Inc. or its owners and affiliates. Kristin Smith is CEO of the Blockchain Association, the Washington DC-based trade association representing crypto.

As a researcher studying the regulatory landscape for digital assets in the United States, I’ve come to realize the complexity and confusion that has plagued this field for far too long. Multiple federal agencies have staked their claims on jurisdiction, leading to inconsistencies and uncertainty within the marketplace. In response, the Securities and Exchange Commission (SEC) has seized the opportunity to intensify its enforcement actions, which could potentially jeopardize the future of crypto in the United States.

I’ve come to realize that this situation has brought about more ambiguity, costly litigation, and the potential for the US to lag behind other regions like the European Union in cultivating a thriving domestic crypto industry.

As a crypto investor, I strongly believe that the current state of affairs is no longer sustainable for all parties involved – not for companies striving to create groundbreaking products and services in the crypto space, not for investors seeking profitable opportunities, and most certainly not for consumers looking for reliable and secure platforms. It’s high time for Congress to take action, reassert its role as a driving force behind economic policy, and craft a contemporary regulatory framework tailored to the unique challenges and opportunities presented by the crypto industry.

As the bill progresses to the Senate, FIT21 signifies a significant advancement in the desired direction. Recognizing the inherent potential of crypto and blockchain technology, this legislation strives to foster innovation whilst safeguarding consumers. The careful equilibrium between these two essential aspects is long-awaited by our industry and the public alike.

As a researcher, I acknowledge the significant accomplishments of House Financial Services Committee Chairman Patrick McHenry (R-N.C.) and House Agriculture Committee Chairman Glenn Thompson (R-Pa.). They invested numerous months into crafting this legislation, actively collaborating with industry players, including members of the Blockchain Association. Through consistent dialogue, they endeavored to grasp the essential concerns and establish a well-designed framework.

Though FIT21 isn’s without its flaws – as no legislation ever is – we remain committed to pushing for constructive improvements. Today’s affirmative vote signifies significant advancement towards a more sensible US regulatory landscape for digital assets. Following the challenges of last year, it’s heartening to witness our elected representatives backing this essential technology that an increasing number of Americans want their administration to foster or at least not hinder.

The House’s approval of this matter underscores the increasing political clout of cryptocurrencies, spurred on by favorable advancements like the bipartisan congressional revocation of SAB121 and the SEC’s contentious and unlawful accounting directive. A survey reveals a significant and expanding segment of the American voter base is eager to vote for politicians who grasp crypto and advocate for its expansion in the US.

See also: The Biden Administration Is Easing Up on Crypto (a Vibes Analysis) | Opinion

Crypto could potentially be a significant topic in the forthcoming presidential election, as former President Trump has lately expressed his interest in the technology by openly asking for backing.

As FIT21 progresses towards the Senate, the Blockchain Association and its members will continue to actively participate, promoting prudent legislation that encourages innovative practices while ensuring consumer protection. We extend our heartfelt appreciation to the House leaders who spearheaded this significant milestone, and we eagerly anticipate preserving crypto’s robust political influence in the forthcoming months.