The Financial Innovation and Technology for the 21st Century Act (FIT21) is the first major cryptocurrency bill to pass through one house of Congress. The bill is currently headed to the U.S. Senate, where its future remains uncertain due to a lack of analogs and unclear support. The Senate committee has yet to do any serious work on cryptocurrency regulation. Despite the convincing victory of the House of Representatives, the creation of a comprehensive oversight body for the crypto industry in the US is still in the works.
We need rules of the road," said #Rep . Josh Gottheimer, a Democrat, Maxine Waters, who supported the bill despite opposition from leading Democrats in the White House and the House Financial Services Committee). He characterized the bill as "well-reasoned, thoughtful, bipartisan legislation" and called for cooperation to pass it.
Overall, 71 Democrats and 208 Republicans voted in favor of the bill, while 3 Republicans and 133 Democrats opposed it.
Jake Czerwinski, a lawyer who supports #cryptocurrencies , wrote on The X website, "This is a huge number of elected Democrats expressing 'no confidence' in the current makeup of the SEC, a signal to the Biden administration that fighting cryptocurrencies is a lost platform this year.
The fact that so many Democrats supported the bill suggests that Democrats don't want to alienate crypto-loving Americans before the election cycle.
Biden and Gensler disagreed.
President Joe Biden opposed the bill, but it did not threaten a veto, unlike recent congressional attempts to override the SEC's policy on #cryptocurrency accounting. SEC Chairman Gary Gensler also criticized the bill as unnecessary and jeopardizing existing securities regulations.
"The Financial Innovation and Technology for the 21st Century Act (FIT21) creates new regulatory gaps and undermines years of precedent for investment contract oversight, creating incalculable risks for investors and the capital markets.
First, the bill removes investment contracts recorded on blockchain from the scope of the statutory definition of securities and eliminates the time-honored protections of most federal securities laws.
Rep. Maxine Waters argued that the bill would allow cryptocurrency companies that skirt securities laws to avoid liability.
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