The Blockchain Association has called for a full House floor vote on the Financial Innovation and Technology for the 21st Century Act (FIT21), or H. R. 4763. The association made the appeal in a letter on Monday to U.S. House Speaker Mike Johnson and Minority Leader Hakeem Jeffries.
In the letter, the Blockchain Association emphasized the importance of regulatory clarity to the U. S. digital asset industry.
1/ Today, @BlockchainAssn members sent a letter to @SpeakerJohnson and @RepJeffries in support of a floor vote for the Financial Innovation and Technology for the 21st Century Act (#FIT21).https://t.co/RhBfe9Gg5p pic.twitter.com/BUoEnoOEAD
— Blockchain Association (@BlockchainAssn) May 20, 2024
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Industry Heavyweights Show Support For a Full House Floor Vote
The House Republicans stated today on X that the full chamber will vote on the FIT21 bill this week.
However, industry heavyweights such as Ripple, Kraken, and Circle have already signed the letter by the Blockchain Association. The letter indicated that there has been no specific targeted market regulation in the blockchain and digital asset market since the birth of the Bitcoin network in 2009.
The letter reads:
“Since the inception of the Bitcoin network in 2009, the blockchain and digital asset industry has existed without targeted market regulation. The absence of clear rules leads to confusion in the marketplace for companies – and leaves users and consumers unprotected.”
Also read: Brian Armstrong Calls on U.S. Lawmakers to Sign on Crypto Bills
Regulatory Hurdles in the U. S. Crypto Industry
Regulators in the U. S. , especially the Securities and Exchange Commission (SEC), have been criticized for their stance with respect to crypto regulation. The SEC’s policy of regulation-by-enforcement has been viewed as harsh and anti-crypto, which might lead American companies to move abroad and inhibit technological progress in the United States.
According to the letter by the Blockchain Association, the absence of regulatory clarity obstructs innovation and makes America look bad in the world of technology.
The letter continued:
“We are seeking pro-innovation and pro-consumer guardrails to ensure a fair and safe marketplace and to safeguard U.S. technological leadership in this cutting edge space.”
If FIT21 is approved, the Commodities Futures Trading Commission (CFTC) would have superior power over digital asset regulation, and also increase legal protection for crypto users globally.
Congress Moves Forward With Crypto Legislation
The drive for a House vote on FIT21 comes as crypto legislation, in general, is gaining increased momentum in the U.S. Congress following an approved resolution that might eradicate SEC’s controversial accounting bulletin, SAB121.
President Joe Biden earlier stated that he would veto the attempt to reject SAB121, clearly emphasizing “substantial financial instability and market uncertainty” should he sign off on the resolution.
Moreover, President Biden may change his stance if there is strong bipartisan support against the SEC’s crypto guidance.
Political considerations might influence legislators’ decisions to support or oppose the Financial Innovation and Technology Act of 2021 (FIT21). With the 2024 U.S. elections underway, including numerous state primaries, figures such as Senator Elizabeth Warren have emphasized their stance on the regulation and supervision of digital currencies as the U.S. election draws near.
Cryptopolitan Reporting by Lawrence Damilola