The#FIT21Act, namely the "Financial Innovation and Technology for the 21st Century Act," is a bill created to regulate digital assets in the United States.
📌The main articles in the law are as follows:
🔸Regulatory Framework
🔸Commodity Regulation
🔸Securities Regulation
🔸Common Rules
🔸Stablecoin Regulation
“This legislation aims to provide the regulatory clarity and strong consumer protections necessary for the digital asset industry to thrive in the United States.”
The possible changes that the FIT21 Law will create in the market are as follows:
📍Regulatory Clarity: Sets clear rules for regulating digital assets, reducing uncertainty for investors and market participants.
📍Consumer Protection: Introduces stronger measures to protect consumers, which increases investor confidence and reduces the risk of fraud.
📍Allocation of Authority Between CFTC and SEC: Clarifies regulatory authority between the Commodity Futures Trading Commission (#CFTC) and the Securities and Exchange Commission (#SEC). While the#CFTCwill regulate decentralized digital assets as commodities, the#SECwill regulate centralized digital assets as securities.
📍Transparency and Disclosure: Requires disclosure of information such as source code, transaction records, economic models, development plans and risk factors of digital assets and related#blockchainsystems.
📍Increase in Institutional Investments: By providing a safer and regulated market environment, it encourages institutional investors to enter the market.
📍Prevention of Market Manipulation: To prevent market manipulation, it imposes strict regulations on intermediaries and requires registration with the CFTC.
📍Stablecoin Regulation: Defines#CFTCand #SEC's limited regulatory authority over #Stablecoins, excluding certain fraudulent activities.