- US House passes FIT21 for crypto regulation, bipartisan support signals industry momentum.
- FIT21 faces tough Senate scrutiny amid concerns from SEC and White House.
- Uncertain future for FIT21 as negotiations will shape US crypto regulation landscape.
With a vote of 279 to 136, the Financial Innovation and Technology for the 21st Century Act (FIT21) has been passed by the US House of Representatives. Significant for the bitcoin industry, this bill seeks to establish a US legal framework for digital assets. The measure’s bipartisan character was demonstrated by the surprising backing given by former House Speaker Nancy Pelosi, who joined forces with 208 Republicans.
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Still, FIT21’s adventure is far from done. In the Senate, where cryptocurrency legislation is still mostly uncharted ground, it now confronts a more difficult task. It will be challenging to convince the Senate and the Biden administration to support the bill, regardless of whether the House has moved toward crypto-friendly measures.
Both the White House and the SEC have expressed reservations with FIT21. Chair Gary Gensler of the SEC has voiced his concern that the bill does not adequately safeguard consumers and has pushed for the application of existing regulations to the bitcoin business.
Similar to this, the White House has urged a more all-encompassing strategy, stressing the need of a foundation based on current authorities. Still, the approval of FIT21 marks a dramatic change in the direction of US crypto law. The sector has hampered innovation and investor trust for years by operating in a legal murky area. FIT21 proponents think it will provide much-needed clarity and let companies function more confidently.
Regulators, however, continue to be wary. Shielding customers from the inherent dangers of cryptocurrencies, like volatility and possible frauds, is their main concern. They contend that fighting money laundering and other illegal activity requires a stronger regulatory structure.
As FIT21 moves to the Senate, its future is in jeopardy. The law may be drastically changed by amendments, which might include tougher consumer protections or even its total rejection.
The ultimate form of cryptocurrency legislation in the US will be shaped in large part by negotiations involving politicians, regulators, and the White House. There will be a lot of discussion and maybe compromise in the next months, which will have a significant impact on investors, companies, and the future of financial systems globally.
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