The cryptocurrency industry has seen monumental development, following a vote to pass the Financial Innovation and Technology for the 21st Century Act’s crypto bill ( FIT21). However, US Congressman Brad Sherman expressed concerns regarding the proposed bill, which aims to establish a comprehensive regulatory framework for these digital assets.
The pro-crypto bill was supported by a majority of members of the US House of Representatives. Specifically, approximately 279 members voted in favor of this approach, while 139 voted against.
Importantly, Democrats, including House Speaker Nancy Pelosi, accounted for 71 of the 279 votes cast for passage of the bill, while the remaining 208 votes represented Republicans. Additionally, a memo endorsing the Republican-developed proposal was signed by eight House Democrats, demonstrating broad bipartisan support for the measure.
FIT21 Crypto Bill Sees Criticism From Brad Sherman
On Wednesday, May 22, the House of Representatives passed the bill (FIT21), which marks a major step forward for the United States in establishing clear regulations for the domestic cryptocurrency industry.
Even though the bill received immense support so far it has not yet been promulgated. If the bill is approved by the Senate and signed into law, it will define the powers of the Commodity Futures Trading Commission (CFTC) and the United States Securities and Exchange Commission (SEC) on crypto assets.
Simply put, the approach aims to give both regulators common power in regulating the digital assets sector. It will help identify which digital assets are securities and commodities in addition to protecting institutional and retail investors and consumers.
“Unfortunately, our current regulatory framework prevents digital asset innovation from reaching its full potential. The SEC and CFTC are currently engaged in a food fight for control of these asset classes,” said Representative Patrick McHenry.
Although the bill may present a promising future for crypto assets, US lawmaker Brad Sherman highlighted its negative impact on the industry and the United States. Addressing its short-term effects, Sherman noted that the measure would lead to a shift away from government accountability. American SEC.
Additionally, Sherman says the pro-crypto law could lead to no or fewer regulations for cryptocurrency. He believes this approach could gut all securities regulations for the stocks and bonds that fuel the U.S. economy.
A competitor to the American dollar
Meanwhile, in the long term, Sherman believes that crypto will create a new currency (cryptocurrency), which, according to him, constitutes “hidden money”, outside of American tax laws. Thus, if the bill is approved, the United States will be unable to enforce its laws against those who use these assets for illicit activities, such as drug traffickers, child traffickers and others.
Furthermore, Sherman believes that the law’s entry into force will create a new competitor to the US dollar, given that digital assets, particularly Bitcoin, are already considered by many to be a better store of value than the US dollar.
Featured image from iStock, chart from Tradingview.com
