U.S. House Approves Crypto FIT21 Bill With Wave of Democratic Support

As a crypto investor with several years of experience in the industry, I’m thrilled to see the U.S. House of Representatives pass the Financial Innovation and Technology for the 21st Century Act (FIT21) with such a strong bipartisan vote. This marks a significant milestone for the crypto industry in the United States, as it represents our first major legislative accomplishment in Congress.

As an analyst in the crypto industry, I’m thrilled to report that we experienced a significant policy victory on Wednesday. The House of Representatives passed a comprehensive bill to regulate digital asset markets, securing a resounding 279-136 vote. Notably, this win saw Democrats from both sides of the aisle coming together in support of it.

As a financial analyst, I can tell you that the Financial Innovation and Technology for the 21st Century Act (FIT21) represents a significant milestone in the regulatory landscape of cryptocurrencies, as it is the first major bill related to digital assets to pass through one of the chambers of Congress. However, the road ahead remains uncertain, as there is currently no equivalent legislation in the U.S. Senate. The level of support for this initiative is unclear at this level of government, and the necessary committees have not yet engaged in an extensive exploration of cryptocurrency-related issues.

As a crypto investor, I’ve noticed that the US is lagging behind other major global jurisdictions when it comes to setting clear-cut regulations for cryptocurrencies. The recent court victory on Wednesday was a step in the right direction, but it doesn’t mean we’re there yet. The implementation of comprehensive oversight remains an uphill battle.

“Rep. Josh Gotthimer (D-N.J.), a Democratic representative who went against the White House and the ranking Democrat on the House Financial Services Committee, Rep. Maxine Waters (D-Calif), advocated for “carefully crafted, reasonable, and collaborative legislation.” He emphasized that this bill deserves to be made into law if Democrats and Republicans cooperate during the vote.”

Approximately 71 Democrats and 208 Republicans endorsed the bill during the vote, while 3 Republican legislators and 133 Democratic ones opposed it.

President Joe Biden expressed his opposition to the bill through a policy statement, without explicitly threatening a veto, as he did previously when Congress aimed to overturn the SEC’s attempt to establish crypto accounting guidelines. SEC Chairman Gary Gensler also made a forceful argument against the legislation in a detailed public statement, contending that it was unnecessary and posed a threat to existing securities regulations.

House Republicans are spearheading an effort to create a regulatory framework for the U.S. cryptocurrency sector. This legislation aims to put in place safeguards for consumers, designate the Commodity Futures Trading Commission (CFTC) as the primary regulator of digital assets, and clarify the distinction between crypto tokens classified as securities or commodities.

According to Waters, the proposed legislation could enable cryptocurrency companies that have previously evaded securities regulations to escape accountability.

As a crypto investor, I’ve witnessed firsthand the alarming actions of certain entities who have amassed vast fortunes through unlawful issuance and facilitation of buying and selling crypto securities. And now, Republicans are proposing legislation that could legitimize these very same illegal activities. It’s disconcerting to think that those who have profited from breaking the rules may be further rewarded.

Before the House held its vote in the afternoon on Wednesday, several amendments to the bill were discussed during the debate. These amendments were proposed by Representatives Greg Casar (D-Texas), Brittany Pettersen (D-Co.), Ralph Norman (R-S.C.), and Scott Perry (R-Pa.). Casar’s proposal to adjust the crowdfunding exemption from $75 million to $5 million was unsuccessful, but the other amendments were accepted.

UPDATE (May 22, 2024, 21:48 UTC): Adds vote count, removes CBDC bill mention.