Several lawmakers in the U.S. House of Representatives support a bill clarifying the roles of the nation's financial regulators regarding digital assets, which will be put to a vote on May 22.

Speaking on the House floor on May 21, North Carolina Representative Wiley Nickel urged support for passage of the Financial Innovation and 21st Century Technology (FIT21) Act. This legislation would clarify how the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission will regulate cryptocurrencies and, according to Nickel, “prevent the next FTX from occurring.”

Nickel specifically called on his Democratic and Republican colleagues to vote in support of the FIT21 bill. Reports have suggested that the Democratic leadership is strongly opposed to passing the crypto bill, but will not 'break the vote' against it. The American Prospect report on May 21 claimed that former House Speaker Nancy Pelosi would support FIT21.

The bill restricts the SEC's authority to pursue a "regulation through enforcement" approach to crypto firms. To date, the commission has filed lawsuits against several crypto companies and individuals affiliated with them, including Ripple, Kraken, Coinbase, and Binance.

“The SEC is turning cryptocurrency regulation into a political football, forcing President [Joe] Biden to choose sides on an issue that matters to many Americans,” Nickel said.

The Rules Committee will consider the FIT21 bill, or H.R., on May 21 at 4 p.m. It will debate 4763, with a full vote expected the next day. The vote comes after the House and Senate passed one of the first crypto-focused bills that would remove the requirement for banks to hold customers' digital assets on their balance sheets against capital. On May 8, President Biden said he planned to veto this resolution.#FIT21#crypto #regulation

How do you think the FIT21 bill will affect cryptocurrency regulations? We are waiting your comments.