On May 23, the U.S. House of Representatives passed the Republican-led 21st Century Financial Innovation and Technology Act, or FIT21, with 279 votes in favor and 136 against. Moreover, 71 Democrats, who have always been hostile to cryptocurrencies, voted in favor of the bill. Are the Democrats also going to support cryptocurrencies?
Although the news is good, don’t get too excited! Because the FIT21 bill has been voted in the House of Representatives, it does not mean that the bill has been passed directly. After that, it will be transferred to the Senate for a vote before it can be officially passed! But it is said that the probability of the Senate rejecting it is very low!
The FIT21 Act can be called the most comprehensive crypto market structure bill in history, and it is the most significant legislative achievement of the entire cryptocurrency industry in the United States! It’s a bit confusing, but there are two key words: comprehensive and significant!
How to understand these two keywords? Everyone should know that although the United States also has regulatory laws for cryptocurrencies, they are very scattered, unclear, and difficult to enforce. For example, if a blockchain project and a US regulator start a lawsuit, the time period is very long, usually several years, and in the end it is difficult for both parties to reach an agreement, and the trial is very difficult.
This cannot be blamed on the judges directly. The main reason is that blockchain and cryptocurrency are so new that there is no law to follow! For example, there is no law that explicitly stipulates how to start a blockchain project. Another example is whether digital assets are commodities or securities. In short, the lack of comprehensive legislation is very detrimental to the development of the entire cryptocurrency market.
However, the above problems are all solved in this legislation. Let's take a look at how these problems are solved, that is, take a look at the main content of the 376-page FIT21 bill. I believe that after reading the main content, you will definitely feel that everything is clear!
First of all, the bill defines the unique structural issues of digital assets and provides a safe and efficient way for blockchain projects to launch in the United States. Second, it provides clear consumer protection. For example, it stipulates the lock-up period, annual sales limit and disclosure requirements for token insiders. This one item eliminates many projects that directly cut leeks! Third, it clarifies which digital assets are regulated by the Commodity Futures Trading Commission (CFTC) and which are regulated by the U.S. Securities and Exchange Commission (SEC). This is important because the definitions of "commodities" and "securities" are different, and the regulatory methods are completely different!
It is no exaggeration to say that once these regulations are in place, it will greatly benefit the innovation and popularization of cryptocurrencies in the United States! Finally, here is an extracurricular assignment. If the Senate really passes the FIT21 bill, do you think the US cryptocurrency market will explode?
