The Chairman of the House Financial Services Committee,  Rep. Patrick McHenry,  has announced an upcoming vote on the Financial Innovation and Technology for the 21st Century Act (FIT21), a comprehensive bill aimed at regulating the crypto industry. 

The vote is scheduled for next week and is important as McHenry, a Republican from North Carolina, nears the end of his congressional career.

If passed, FIT21 would mark a milestone for cryptocurrency regulation in the United States. The bill is the most substantial crypto-related legislation to reach this stage in Congress. It has already seen several related successes in the House, including the passage of measures challenging the Securities and Exchange Commission’s (SEC) crypto accounting policies.

At the DC Blockchain Summit on Wednesday, McHenry said:  “We will have this bill on the House floor next week for a vote.”

Bipartisan Support Critical for Bill’s Progress

The bill’s advancement depends heavily on bipartisan support, a point McHenry emphasized at the DC Blockchain Summit. Furthermore, FIT21’s success in the House could influence its reception and progress in the Senate.

Representative French Hill, who heads a crypto subcommittee and is considered a potential successor to McHenry, expressed optimism about the bill receiving substantial support from both parties. He noted that 21 Democrats previously backed a move to overturn the SEC’s controversial crypto accounting provision – Staff Accounting Bulletin No. 121 (SAB 121), despite President Joe Biden’s veto threat.

Hill revealed that FIT21 is in response to President Biden’s executive order calling for legislative action in the cryptocurrency sector. The bill aims to establish a more structured market for digital assets in the U.S., providing clarity and security for the industry’s operation.

The Legislative Outlook Surrounding the FIT21 Bill

While the House appears poised to pass FIT21, its future in the Senate remains to be determined. McHenry suggested that anything could happen in the lame-duck session of Congress, which occurs after the November elections and before the new Congress convenes. Bills often get attached to other legislation to pass through the legislative process.

Nonetheless, the House vote on FIT21 will be a critical factor in determining how the Senate will approach the bill.