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Former United States House Speaker Nancy Pelosi is reportedly considering supporting the Republican-led crypto bill, the Financial Innovation and Technology Act for the 21st Century (FIT21). According to a report by the American political magazine The American Prospect on May 21, citing sources familiar with Pelosi’s thoughts, Speaker Emerita Pelosi, who is no longer in Democratic Party leadership, may support the bill that could come to the House for a vote on May 22.
Crypto Regulations in the U.S. Agenda
FIT21 will clarify how the Commodity Futures Trading Commission and the Securities and Exchange Commission will share authority over crypto assets. If approved, the bill will also amend the 90-year-old Howey test, a legal standard for determining which assets are securities, and will mostly remove cryptocurrencies from SEC oversight.
FIT21 has been welcomed by the crypto industry, with many claiming it clears the currently murky regulatory framework for crypto assets. Mark Hays, a senior policy analyst on fintech at Americans for Financial Reform, told The American Prospect:
“The bill provides what the industry has been seeking for a while: a regulatory regime mostly dominated by the CFTC and much more in tune with the global economy.”
If Pelosi supports the bill, she will oppose Democrats Maxine Waters and David Scott, who are against the bill but whose leaked emails show they will not force House Democrats to vote against it.
Details on the Issue
Pelosi’s support for the pro-crypto bill is the latest warming of Democrats towards crypto, and some analysts suggest that a potential U-turn in the SEC’s approval of Ethereum funds is another effort to influence the support of pro-crypto voters. However, financial reform groups and anti-crypto Democrats argue that the bill will undo decades of financial regulations to benefit the crypto industry. Hays shared the following statements on the issue:
“This is not about supporting crypto; it’s about trying to overcome the threat of promises from super PACs.”
The crypto industry has benefited from super PACs that can raise unlimited amounts of money to support pro-crypto candidates in the upcoming U.S. elections. Opposing Democrats like Senator Elizabeth Warren and financial reform groups see them as a threat due to the increasing role of cryptocurrency in this year’s elections. On May 21, North Carolina Representative Wiley Nickel called on lawmakers to support FIT21 to stop the SEC from turning cryptocurrency regulation into a political football.
