June 5, 2024
Policy & Regulation

Crypto Regulation Bill FIT21 Passage Fuels Congressional Debate

In a sharply divided move, the U.S. House of Representatives has passed the Financial Innovation and Technology for the 21st Century Act (FIT21), a highly contentious piece of crypto regulation. The passage of FIT21, which secured a narrow victory with a vote of 279 to 136, has ignited a firestorm of debate and opposition within Congress.

Bipartisan Split and Contentious Provisions

The FIT21’s passage revealed a bipartisan split, with 71 Democrats, including former House Speaker Nancy Pelosi, throwing their support behind the legislation.

However, the bill’s provisions aimed at establishing a regulatory framework for digital assets particularly focusing on cryptocurrencies such as Bitcoin (BTC), have stirred controversy.

Critics argue that FIT21 grants excessive authority to the Commodity Futures Trading Commission (CFTC) while neglecting crucial enforcement mechanisms.

Furthermore, House Financial Services Committee Ranking Democrat Maxine Waters minced no words in denouncing FIT21. She labels it as one of the most flawed pieces of legislation she has encountered. Waters expressed concerns about the bill’s potential to strain the CFTC’s resources and weaken enforcement efforts. Similar sentiments were also echoed by other detractors, including SEC Chair Gary Gensler.

Uncertain Future in the Senate

As FIT21 now moves to the Senate, its prospects remain uncertain. With no companion bill in the Democrat-controlled chamber and key lawmakers expressing reservations, the road ahead for FIT21 is fraught with challenges.

The bill’s passage has underscored the increasingly partisan nature of crypto regulation, with Republicans generally more inclined to support digital assets.

Former President Donald Trump’s vocal endorsement of cryptocurrency and his willingness to accept donations in digital currencies underscores this partisan divide.further highlights the deep-seated divisions within Congress on this issue.

Awaiting Senate Action

As stakeholders and the crypto community alike watch closely, the fate of FIT21 hangs in the balance. Its journey through the Senate promises to be tumultuous, with the outcome likely to shape the regulatory landscape of digital assets for years to come. Nevertheless, this historic move represents the first time a comprehensive legislation regarding digital assets has been put to vote in the full House.

Image from Flickr

Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.

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