Breaking News On May 22, the U.S. House of Representatives passed the 21st Century Financial Innovation and Technology Act (FIT21) by a vote of 279 to 136, with House Democrats showing strong support. The passage of the cryptocurrency market structure bill marks the industry's most significant legislative achievement in Congress.
FIT21 will grant the Commodity Futures Trading Commission more power and funding to oversee crypto spot markets and "digital commodities," particularly Bitcoin. The bill also creates a process to allow secondary market trading of digital commodities if they are "initially offered as part of an investment contract." “Stablecoin and anti-money laundering provisions are also in the bill. Although FIT21 is unlikely to be introduced in the Senate this year, the bill could lay the groundwork for the next Congress in January.
FIT21 will protect consumers by strengthening transparency and accountability among market participants:
✅Digital asset developers must provide accurate and relevant disclosures, including information related to the operation, ownership and structure of digital asset projects;
✅Digital asset customer service institutions, such as exchanges, brokers and dealers, must provide appropriate disclosures to customers;
✅Separate customer funds from their own funds;
✅Reduce conflicts of interest through registration, disclosure and operational requirements;
FIT21 will protect digital Asset projects to strengthen the market:
✅Digital asset developers will have a way to raise funds;
✅Participants will have a clear process to determine which digital asset transactions are subject to the jurisdiction of the U.S. Securities and Exchange Commission (SEC) and the U.S. Commodity Futures Trading Commission (CFTC).
FIT21 will protect digital asset customer service agencies by:
✅Establishing clear boundaries between the SEC and the CFTC;
✅Establishing a comprehensive registration system that allows them to legally serve customers in the digital asset market.
