The U.S. Congress will vote on new legislation for the crypto industry by the end of May

According to CryptoSlate, the U.S. Congress may vote on new legislation for the crypto industry by the end of May, which aims to provide a clear regulatory framework for digital assets and address long-standing market supervision and consumer protection issues.

Patrick McHenry, chairman of the House Financial Services Committee, said that the new legislation will provide more clarity in regulatory supervision for the crypto industry, and the legislation will be voted on by the end of May. The proposed legislation, called the 21st Century Financial Innovation and Technology Act (FIT21), aims to provide a clear regulatory framework for digital assets and address long-standing market supervision and consumer protection issues.

"For a long time, the U.S. digital asset ecosystem has been plagued by regulatory uncertainty that has stifled innovation and left consumers unprotected." Sheila Warren, CEO of the Crypto Committee, explained that consideration will take place during the week of May 20. The House Rules Committee, composed of nine Republicans and four Democrats, is likely to review the legislation based on "structured rules" that determine which amendments can be considered and the time for debate between the two sides. The committee will decide whether FIT21 should be put to a live vote by the end of May. The bill must also pass the Senate and the president.

FIT21 gives the CFTC jurisdiction over crypto commodities and gives the SEC jurisdiction over cryptocurrencies offered in investment contracts. The bill explicitly aims to establish "a clear line between the SEC and the Commodity Futures Trading Commission."

The SEC's expanding enforcement efforts have been highly controversial in recent years, so FIT21 could resolve one of cryptocurrency's most high-profile controversies. The distinction is intended to help crypto developers raise funds and clarify whether their activities are overseen by the CFTC or the SEC.

In addition to separating the roles of regulators, the bill creates a process to allow secondary market trading of crypto commodities first offered in investment contracts. FIT21 also sets rules for companies that must register with the SEC and CFTC, including requirements for customer disclosure, asset protection, and operations.