According to “The Block” report, investment bank TD Cowen said that a cryptocurrency market structure bill called the “Financial Innovation and Technology Act for the 21st Century” (FIT21) may not have a chance to become law in this Congress, but the bill will U.S. lawmakers are getting ready for work next year.
The Republican-led bill takes a comprehensive approach to regulating cryptocurrencies as a whole and shifts more responsibility to the Commodity Futures Trading Commission (CFTC). The bill will be voted on by the full House of Representatives at the end of this month.
"We believe that getting hung up on the details of this legislation is a mistake and it has no chance of becoming law in this Congress." TD Cowen Washington Research Group, led by Jaret Seiberg, wrote in a report released on Monday (29th) : "The Senate Banking Committee has not done enough to prepare the bill for passage in the Senate. In addition, Democrats are more concerned about investor protection than the content of this bill."
FIT21 is unlikely to pass the Senate, with Democratic Rep. Maxine Waters opposing the bill and Democratic Sen. Sherrod Brown, the chair of the Senate Banking Committee, remaining silent on the issue. However, TD Cowen writes:
“This will serve as a key cornerstone in Congress in 2025/26 in what is expected to be a renewed effort to enact crypto market structure legislation. It will allow House members to take a stand and shift focus to the Senate to advance their own bills.”
A vote on the FIT21 bill could also reveal how Democrats and Republicans view key issues such as money laundering prevention and investor protection, added TD Cowen, who expects the bill to pass unanimously in the House.
The bill to be voted on is slightly different from the original version, mainly due to technical amendments. One of the changes includes the addition of Majority Whip Tom Emmer’s Securities Clarity Act, which aims to clarify how digital assets are classified and Create a new definition for tokens that fall somewhere between commodities and securities.
Trump may not necessarily maintain his position after being elected
US presidential candidate Donald Trump expressed support for cryptocurrencies at an event last week, but TD Cowen said it was unclear whether Trump would maintain that support if he won the presidential election this year. position. The investment bank believes Trump may become a "complicating factor" going forward.
When Trump responded to questions from attendees at the time, he said that “cryptocurrencies are leaving the United States due to hostility toward cryptocurrencies.” He did not want this to happen. He also said, “If you support cryptocurrencies, you’d better vote for Trump.” general".
TD Cowen said:
“It is unclear whether Trump will stick to this approach if he wins the election in November. However, we believe he risks further polarizing cryptocurrency regulation, which may make it more difficult to find bipartisan compromise, and we will Pay close attention to this matter."
This article TD Cowen: The U.S. Crypto Market Structure Act may not have a chance to be passed this year, and Trump may not continue to support cryptocurrency if he wins the election. It first appeared on Zombit.