The US House of Representatives pass the Financial Innovation and Technology for the 21st Century Act (FIT21) by a resounding vote of 279 to 136. The bill, considered a major victory for the crypto industry, aims to establish a framework long-awaited regulatory framework for digital assets in the United States.
FIT21: bipartisan support, but obstacles remain
FIT21 received a boost from an unlikely source – former House Speaker Nancy Pelosi. In a move that defied expectations, Pelosi defended the bill, calling it a “first step” toward regulating the burgeoning crypto space. This bipartisan support, with 71 Democrats joining forces with 208 Republicans, marks a historic moment for the industry.
However, the champagne corks will likely remain open for the time being. The bill faces a much tougher challenge in the Senate, where crypto regulation remains uncharted territory. While the House’s recent shift toward crypto-friendliness may offer some hope, convincing the Senate and the Biden administration will be a challenge. difficult battle.
Regulators are wary, the president threatens a veto
The SEC and the White House have expressed concerns about FIT21. The SEC, led by Chairman Gary Gensler, believes the current bill lacks sufficient consumer protections and argues that existing regulations can be applied to crypto. The White House, echoing these concerns, called for a more comprehensive approach and a framework based on “existing authorities.” President Biden even threatened to veto the bill in its current form.
As of today, the market cap of cryptocurrencies stood at $2.5 trillion. Chart: TradingView.com
A fight for clarity: Crypto vs. Regulation
The adoption of FIT21 marks a turning point in the ongoing saga of US crypto regulation. For more than a decade, the industry has operated in a gray zone, hindering innovation and investor confidence. Supporters of FIT21 believe the bill will provide much-needed clarity, allowing businesses to operate with greater certainty.
Regulators, however, remain cautious. Their primary concern is to protect consumers from the inherent risks associated with cryptocurrencies, such as volatility and potential scams. They also argue that a more robust regulatory framework is needed to prevent money laundering and other illicit activities.
The way forward: compromise or dead end?
The future of FIT21 remains uncertain. The Senate could significantly change the bill, possibly introducing stronger consumer protection measures or even scrapping it altogether. Negotiations between lawmakers, regulators and the White House will be crucial in determining the final form of crypto regulation in the United States.
The fight for clear regulation of cryptocurrencies is far from over. With both sides having strong views, the coming months could see a period of intense debate and compromise, or potentially even an impasse. Given the potential of cryptocurrencies to reshape the financial landscape, the outcome of this battle will have significant implications for investors, businesses, and the future of money itself.
Featured image from The Hill, chart from TradingView
