US House Passes Pro-Crypto Legislation FIT21 Despite SEC Warnings

US House Approves FIT21 Crypto-Friendly Legislation

The US House recently voted in favor of the Financial Innovation and Technology for the 21st Century Act (FIT21), a crypto-friendly legislation that aims to revamp cryptocurrency oversight by transferring control to a government agency known for its industry-friendly stance.

Key Points:

• The objective of FIT21 is to establish a new legal framework for digital currencies.
• The House passed the legislation with a bipartisan vote of 279-136, with 71 Democrats and 208 Republicans in favor.
• Senate approval and the President’s signature are still required for FIT21 to become law.

FIT21 Crypto Bill Expands Industry Freedom

The legislation would grant expanded liberties to crypto operators in the US and shift regulatory oversight of digital assets to the Commodity Futures Trading Commission (CFTC). This move would categorize most digital assets as commodities rather than securities, diminishing the SEC’s regulatory authority over them.

Challenges and Opposition

President Joe Biden faces a dilemma as FIT21 challenges the SEC’s crackdown on the crypto industry. The White House and SEC Chair Gary Gensler have expressed concerns about consumer protection and regulatory gaps that the bill may create.

House Majority Whip’s Perspective

House Majority Whip Tom Emmer believes that FIT21 will foster American digital asset innovation and provide entrepreneurs with the clarity needed to thrive in the US market.

Looking Ahead

The passage of FIT21 sparks a conversation on national security, consumer protection, and global competitiveness in the evolving digital economy landscape. It shapes the future of the industry and sets the stage for innovation and growth.