Crypto Industry Rallies Behind House Bill As it Heads Toward Final Vote

As an experienced financial analyst, I believe that the Financial Innovation and Technology for the 21st Century Act (FIT21) is a significant step forward for the cryptocurrency industry in the United States. The industry’s associations and leading companies are urging House lawmakers to pass this legislation, emphasizing its importance in maintaining the U.S.’s leadership role in financial innovation and keeping up with global competitors.

The United States House of Representatives is about to hold a vote, bringing cryptocurrency regulation closer than ever before. Cryptocurrency advocacy groups and leading industry players are urging House leaders to back this initiative.

A group of significant digital assets organizations and businesses, represented by the Crypto Council for Innovation, penned a letter to Speaker of the House Mike Johnson (R-LA) and Minority Leader Hakeem Jeffries (D-NY), urging the passage of the Financial Innovation and Technology for the 21st Century Act (FIT21). The bill is scheduled for a floor vote next week, with many anticipating a mid-week decision.

The proposed legislation empowers the Commodity Futures Trading Commission (CFTC) to take the lead in regulating digital assets, with distinct responsibilities outlined for the CFTC versus the Securities and Exchange Commission (SEC). This bill reinforces consumer protections through regulations on asset custody and treatment during bankruptcy proceedings. Additionally, it introduces further safeguards against potentially risky practices.

As a crypto investor, I firmly believe that by passing this legislation, we can significantly boost the expansion of blockchain technology and digital assets in the US. This will not only fuel financial inclusion but also fortify our national security. It is imperative for us to preserve our position as pioneers in financial innovation.

The cryptocurrency sector is currently experiencing a significant victory in Washington with both the House and Senate successfully passing a resolution to repeal a controversial accounting policy set by the Securities and Exchange Commission (SEC). However, President Joe Biden has announced his intention to veto this action. This repeal of SEC’s Staff Accounting Bulletin 121 (SAB 121) marked a hard-fought battle in which the crypto industry emerged triumphant, garnering considerable backing from within the Democratic Party, traditionally more hesitant than Republicans when it comes to supporting cryptocurrencies.

Approximately one fifth of Senate Democratic members supported the accounting industry’s stance in the recent dispute, with Majority Leader Chuck Schumer (D-N.Y) among them. Around 10% of Democratic representatives in the House took similar positions.

As an analyst, I’ve been following the progress of the extensive legislative proposal making its way to a House vote. Compared to what’s currently on the table in the Senate, this bill holds greater significance. So far, some pivotal Democrats in the Senate have yet to demonstrate the same level of commitment as their counterparts in the House. Instead, they’ve merely suggested merging a different crypto-related bill – focusing on stablecoin issuers – into an existing financial legislation bundle.

Rep. Patrick McHenry (R-N.C.), head of the House Financial Services Committee, noted that the degree of Democratic backing for FIT21 within the House could significantly influence the Senate’s decision to take up the issue. The bill advanced from his committee with a few Democrats in support, defying the stance of their senior member, Rep. Maxine Waters (D-Calif.), who opposed it.

As I moved toward the floor with FIT21, various amendments were proposed by the House Rules Committee in order to meet the May 16 deadline.